CFRA lifts Pinterest stock price target to $53, maintains strong buy

On Friday, CFRA analyst Angelo Zino increased the price target for Pinterest Inc (NYSE:PINS) shares, raising it to $53.00 from the previous $43.00, while reiterating a Strong Buy rating on the company’s stock. Currently trading at $39.57, Pinterest shows mixed valuation signals according to InvestingPro data, with a P/E ratio of 124.28x. Zino’s revised target is based on a price-to-earnings (P/E) ratio of 23 times CFRA’s projected earnings per share (EPS) for 2026, which is below the historical forward averages but aligns with those of Pinterest’s peers.

The adjustment follows Pinterest’s fourth-quarter results, which reported an adjusted EBITDA of $471 million, surpassing both the previous year’s $369 million and the consensus estimate of $445 million. The company maintains strong financial health, earning a "GOOD" overall rating from InvestingPro, with particularly high scores in cash flow management. Revenue growth for the company was at 18%, with monthly active users (MAUs) increasing by 11%. This growth was seen across various regions, with a 4% rise in the United States, 7% in Europe, and 15% in the rest of the world (ROW). Additionally, the average revenue per user (ARPU) grew by 6%, with the U.S. and Europe both seeing a 12% increase, and ROW experiencing a significant 24% rise.

For the first quarter, Pinterest provided a revenue growth forecast of 14%, which was marginally higher than CFRA’s expectations. However, their adjusted EBITDA estimate of $163 million was notably above the anticipated $139 million. Zino believes that the market continues to underestimate the potential for margin expansion at Pinterest, noting that the EBITDA margin of 41% had expanded by 320 basis points.

The analyst also highlighted Pinterest’s investments in artificial intelligence (AI), which are enhancing advertising tools and improving content recommendations. The focus on shoppable content was seen as a positive move, and the engagement levels on the platform are reportedly on the rise, particularly among Gen Z users, who are growing faster than other age demographics.

The recent introduction of Performance+, a new feature set aimed at advertisers, is expected to contribute to further revenue growth. Zino concluded by pointing out Pinterest’s strong financial position, with net cash reserves amounting to $2.5 billion.

In other recent news, Pinterest Inc has been the focus of several analysts’ reports. Benchmark maintained a Buy rating on Pinterest with a steady price target of $55.00, citing the company’s progress in monetizing its first-party data and the potential for revenue growth from its Performance+ products. Meanwhile, Piper Sandler raised its price target on Pinterest to $41.00, following the company’s guidance for 2025 which indicated a year-over-year growth of 13-15%.

KeyBanc Capital Markets increased its price target for Pinterest to $46.00, based on the company’s significant monthly active user growth and successful product initiatives. Rosenblatt Securities also raised its price target for Pinterest to $51, following the company’s fourth-quarter earnings for 2024, which showcased year-over-year sales growth of 18%. Lastly, Raymond (NSE:RYMD) James maintained an Outperform rating on Pinterest and increased the price target to $42.00, citing the company’s solid performance driven by its social AI and advertising technology.

These are recent developments, reflecting the analysts’ confidence in Pinterest’s strategic direction and its ability to leverage its unique data and market position. Notably, all firms emphasized Pinterest’s potential for sustained revenue growth and the effectiveness of its user engagement and monetization strategies.

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