Bernstein raises Pinterest stock to Outperform, target to $47

Published 07/02/2025, 09:28
Bernstein raises Pinterest stock to Outperform, target to $47

On Friday, Bernstein SocGen Group signaled increased confidence in Pinterest Inc (NYSE:PINS), upgrading the social media company’s stock rating from Market Perform to Outperform and raising the price target to $47.00 from the previous $34.00. Currently trading at $33.59 with a market capitalization of $22.69 billion, Pinterest’s recent performance exceeded analyst expectations. InvestingPro analysis suggests the stock is currently undervalued, with additional insights available through their comprehensive Pro Research Report.

Pinterest’s revenue growth, reported at 18% year-over-year, was slightly above the consensus. Moreover, the company’s guidance for Q1 revenue growth of 13-15% is particularly promising, surpassing expectations even when accounting for factors such as the previous Leap Year, Easter timing, and a downturn in Food & Beverage. On a constant currency basis, the high end of this guidance aligns with the 3-year growth trajectory set out in Q3 2023.

The firm praised Pinterest for its effective execution across various aspects of its business. According to InvestingPro’s analysis, the company maintains a "GOOD" financial health score of 2.95, with particularly strong cash flow metrics. Notably, North American user engagement is on the rise, and the company’s ability to identify and monetize commercial opportunities through its taste-graph is proving successful. Approximately 70% of Pinterest’s advertising spend is now dedicated to lower-funnel objectives, which are closer to the point of purchase, indicating a strategic shift towards driving conversions.

Additionally, Pinterest’s international business is receiving a boost from a network of resellers, contributing to its recovery and positive outlook. The analyst’s decision to upgrade the stock reflects the robustness of Pinterest’s strategy and operations, which seem to leave little room for criticism according to the firm’s analysis.

Investors are now watching Pinterest as it continues to capitalize on its growth strategies and leverage its unique market position to drive value. The upgrade and new price target suggest that Bernstein SocGen Group sees a brighter future for Pinterest’s stock performance.

In other recent news, Pinterest’s CEO, Bill Ready, was awarded performance-based restricted stock units with a target value of $18 million. This strategic move is aimed at aligning executive compensation with long-term shareholder value. The final number of units earned by Mr. Ready will be contingent on Pinterest’s total shareholder return relative to its peers in the Nasdaq CTA Internet Index over a three-year period.

Simultaneously, Pinterest’s stock rating has seen mixed responses from analysts. Monness, Crespi, Hardt upgraded the company’s stock from Neutral to Buy, citing strategic initiatives and accelerated revenue growth. However, Piper Sandler downgraded the stock from Overweight to Neutral due to mixed financial results and cautious growth projections.

BofA Securities maintained a Buy rating, anticipating a 16% year-over-year revenue growth for the fourth quarter, despite challenges within the food and beverage advertising sector. On the other hand, Evercore ISI revised its full-year 2025 revenue and EBITDA estimates downward by 3% due to anticipated Q1 challenges.

These are the recent developments for Pinterest. It’s important to note that these assessments are based on the analysis of the respective firms and are not a reflection of the overall market sentiment.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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