US stock futures edge lower after S&P 500 hits record high; PCE data in focus
On Friday, Cantor Fitzgerald increased the price target for Pinterest Inc (NYSE:PINS) shares, setting a new goal of $48.00, up from the previous target of $36.00. The firm maintained its Overweight rating on the social media company’s stock. According to InvestingPro data, Pinterest currently trades at $33.59, with analysts’ targets ranging from $28 to $51, suggesting potential upside. The company, now valued at $22.7 billion, maintains strong financial health with an overall "GOOD" rating from InvestingPro’s comprehensive analysis.
Pinterest’s fourth-quarter results exceeded expectations, with revenues and EBITDA surpassing Wall Street estimates by 1% and 6%, respectively. This performance was attributed to a robust holiday season. The company has also provided guidance for first-quarter revenue growth of 13-15%, which at the high end is 2 percentage points above analyst expectations, and has been received more favorably than buy-side anticipations. InvestingPro data shows Pinterest’s impressive revenue growth of 17.7% over the last twelve months, with a healthy gross profit margin of 79%.
The analyst from Cantor Fitzgerald highlighted Pinterest’s positive outlook, noting that the company’s guidance for the first quarter of 2025 indicates a deceleration of 4 percentage points on an 11-point tough comparison. However, the guidance is still above the high-end estimates of the Street. Furthermore, Pinterest has projected margin expansion in 2025, driven by fixed cost leverage and revenue growth.
Pinterest is currently working on several product initiatives that are expected to incrementally contribute to top-line growth throughout the year. The company’s performance in the fourth quarter and the guidance for the first quarter of 2025 are seen as indicators of the company’s potential and its ability to deliver on its plans. InvestingPro subscribers have access to 12 additional key insights about Pinterest, including detailed analysis of its growth prospects and valuation metrics. Get the complete picture with InvestingPro’s comprehensive research report, available for Pinterest and 1,400+ other top stocks.
In light of these developments, Cantor Fitzgerald has revised its FY26E EBITDA estimate for Pinterest upward by 4%, resulting in the raised price target. The firm’s positive stance reflects confidence in Pinterest’s future prospects and its strategic initiatives.
In other recent news, Pinterest Inc. has been the subject of several analyst upgrades and price target revisions. JPMorgan raised its price target for Pinterest to $42, citing the company’s impressive Q4 results and Q1 guidance. This follows a 90% year-on-year increase in clicks to advertisers in Q4, and an anticipated 15-17% growth in Q1 revenue. BMO Capital also increased its price target for Pinterest to $46, highlighting robust user engagement and potential growth in direct response advertising revenue. Similarly, Goldman Sachs and Bernstein SocGen Group both raised their price targets for Pinterest to $47, with Goldman Sachs maintaining a Conviction Buy rating and Bernstein upgrading the stock from Market Perform to Outperform.
The CEO of Pinterest, Bill Ready, was also recently granted performance-based restricted stock units valued at a target of $18 million. The intention behind this award is to align the CEO’s incentives with long-term shareholder value creation. The final number of units earned by Mr. Ready will be determined by Pinterest’s total shareholder return relative to its peers in the Nasdaq CTA Internet Index over a three-year period. These are the latest developments for Pinterest, a company that continues to show significant growth and promise.
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