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On Friday, KeyBanc Capital Markets updated its outlook on Pinterest Inc (NYSE: NYSE:PINS), increasing the price target to $46.00 from the previous $37.00, while retaining an Overweight rating on the shares. This adjustment follows Pinterest’s fourth-quarter earnings and first-quarter guidance, which surpassed expectations. The social media platform reported significant monthly active user (MAU) growth and successful product initiatives. According to InvestingPro data, Pinterest maintains strong financials with a healthy current ratio of 7.9x and holds more cash than debt on its balance sheet.
Pinterest’s performance throughout 2024 was marked by fluctuations in quarterly results, leading to a generally subdued sentiment among investors. Nonetheless, KeyBanc analysts have observed a more engaged user base and the introduction of Performance+, a feature expected to serve as a multiyear growth catalyst. These developments have bolstered KeyBanc’s confidence in Pinterest’s ability to achieve a 16% annual revenue increase and a target of reaching a low to mid-30% EBITDA margin. InvestingPro analysis shows the company’s impressive revenue growth of 17.7% over the last twelve months, with analysts expecting continued profitability this year.
The raised price target is based on an 18x multiple of the company’s projected 2026 enterprise value to EBITDA (EV/EBITDA). KeyBanc also suggests that there is room for valuation multiples to expand to 22-25x as Pinterest’s growth accelerates. This optimism is rooted in the belief that the company’s recent performance can lead to a sustained uptrend in the stock’s valuation.
Pinterest’s recent achievements in user engagement and product innovation appear to be driving a positive shift in market expectations. With KeyBanc’s revised price target, the firm maintains its Overweight stance, indicating a favorable outlook for Pinterest’s stock performance in the coming years.
In other recent news, Pinterest Inc has seen a wave of positive adjustments from various analyst firms following its fourth-quarter earnings report for 2024. Rosenblatt Securities raised its price target for Pinterest to $51, maintaining a Buy rating, after the company reported year-over-year sales growth of 18%. Furthermore, Pinterest’s guidance for the first quarter of 2025 anticipates constant currency growth of 17% at the higher end of the forecast range.
Raymond (NSE:RYMD) James also lifted its Pinterest stock target to $42, keeping its Outperform rating. The firm cited the company’s performance driven by its social AI and advertising technology, which led to a significant increase in user engagement. Additionally, Cantor Fitzgerald increased the Pinterest stock target to $48, maintaining its Overweight rating, following the company’s robust holiday season performance.
JPMorgan analyst raised the Pinterest stock price target to $42, while maintaining a Neutral rating. The firm noted the company’s impressive growth, with clicks to advertisers soaring over 90% year-over-year in the fourth quarter. Lastly, BMO Capital Markets adjusted its outlook on Pinterest, increasing the price target to $46, and maintained its Outperform rating, based on the company’s robust user engagement and the potential for increased direct response advertising revenue.
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