Social media company Pinterest (PINS) stock just got a rating upgrade from Wolfe analyst Shweta Khajuria. Khajuria, a Top analyst, upgraded the stock to Outperform (Buy) from Peerperform (Hold) and kept a $40 price target, implying more than 24% upside. The call reflects renewed optimism around the platform’s product execution, market environment, and compelling valuation.
Confident Investing Starts Here:
- Quickly and easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter
The upgrade follows Pinterest’s better-than-expected Q1 FY25 earnings and upbeat guidance for the second quarter. The company’s revenue and outlook beat Wall Street’s estimates, helping drive a more than 12% jump in the stock on May 9.
Here’s Why Khajuria Turned Bullish on Pinterest Stock
Back in March, Wolfe had flagged macroeconomic uncertainty as a key concern. However, his stance has improved since then. The firm now sees a “more muted” macro overhang, helped by developments like the U.S.–China trade agreement. In addition, Pinterest’s strong Q1 results and upbeat Q2 guidance serve as fresh “proof points” of the platform’s improving fundamentals.
A major driver behind Wolfe’s optimism is Performance+, Pinterest’s upgraded advertising suite. This tool is becoming central to revenue acceleration. Wolfe estimates that Performance+ is contributing a “2–3 pt growth” lift, making it easier for advertisers to achieve better results. In fact, field tests revealed a “+27.7%” boost in impressions and “22.5%” lower cost-per-clicks (CPCs) compared to similar campaigns not using the tool.
This added efficiency is boosting advertiser engagement and allowing Pinterest to gain share in a digital ad market growing in the low double digits. Wolfe highlighted that Pinterest’s “performance ads product cycle” is improving attach rates and fueling mid-teens growth—outpacing the broader industry.
Another positive is Pinterest’s growing third-party (3P) ad business. Wolfe cited Amazon (AMZN) as a strategic partner, describing it as a long-term catalyst that could unlock further monetization potential.
Pinterest Stock’s Valuation Supports Upside
Despite these tailwinds, Pinterest still trades at just 13.5x projected 2026 EBITDA, a steep discount to peers like Snap (SNAP) and The Trade Desk (TTD), which trade at around 24.5x. Wolfe sees this valuation gap as a “favorable risk/reward skew.”
Also, Pinterest’s year-to-date performance has been solid, with the stock up 12%, outperforming Snap (down 20%) and The Trade Desk (down 34%).
Is PINS Stock a Good Buy?
Overall, Wall Street is bullish on Pinterest stock, with a Strong Buy consensus rating based on 25 Buys and seven Hold recommendations. The average PINS stock price target of $39.83 implies 23.54% upside potential from current levels.
