CFRA raises Pinterest stock price target to $43 on AI capabilities

Published 08/08/2025, 19:20
CFRA raises Pinterest stock price target to $43 on AI capabilities

Investing.com - CFRA raised its price target on Pinterest Inc (NYSE:PINS) to $43.00 from $38.00 while maintaining a Strong Buy rating. The new target aligns with the broader analyst consensus, with targets ranging from $25 to $50, while InvestingPro analysis suggests the stock is currently fairly valued.

The research firm adjusted its 2025 earnings per share estimate to $1.72 from $1.79 and kept its 2026 estimate at $2.12, while initiating a 2027 EPS view of $2.39.

CFRA noted that despite a sell-off in Pinterest shares following second-quarter results and third-quarter guidance that aligned with their expectations, the firm believes the fundamental investment story remains unchanged.

The analyst highlighted international growth as a major opportunity for Pinterest, along with potential to increase average revenue per user, though the firm acknowledged that greater international mix could create headwinds. InvestingPro data reveals 10+ additional insights about Pinterest’s growth potential and financial health, available to subscribers.

CFRA specifically pointed to Pinterest’s expanded AI capabilities in ad delivery models, which are helping reduce cost-per-action and increase click-through rates, while also enabling greater shoppable ad content for users. The company’s strong execution is reflected in its "GREAT" financial health score from InvestingPro.

In other recent news, Pinterest Inc reported a 16.9% year-over-year increase in second-quarter revenue, surpassing consensus estimates by 2%. The company’s EBITDA also exceeded expectations, beating consensus by approximately 8%. Following these results, several firms have adjusted their price targets for Pinterest. TD Cowen raised its price target to $44 while maintaining a Buy rating, and Rosenblatt Securities increased its target to $49, also keeping a Buy rating. Benchmark reiterated its Buy rating and $48 price target, noting mixed performance in average revenue per user, with strong growth in Europe and the Rest of the World. JPMorgan raised its price target to $44, reflecting a 10% increase from its previous valuation, and maintained an Overweight rating. Meanwhile, Raymond (NSE:RYMD) James maintained a Market Perform rating, highlighting advancements in Pinterest’s advertising technology and new partnerships, including one with Instacart (NASDAQ:CART). These developments indicate varied perspectives among analysts regarding Pinterest’s future performance.

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