Street Calls of the Week
Investing.com - Mizuho initiated coverage on Pinterest Inc (NYSE:PINS), currently trading at $33.32 with a market capitalization of $22.6 billion, with an Outperform rating and a $50.00 price target, representing a potential 49% upside from current levels. According to InvestingPro data, the company maintains strong financial health with an overall score of "GREAT."
The Wall Street firm outlined a bull case scenario where Pinterest shares could reach $62, suggesting a possible 94% upside, while acknowledging a bear case downside of 26% to $25. InvestingPro analysis shows Pinterest holds more cash than debt on its balance sheet, positioning it well for future growth initiatives.
Mizuho highlighted Pinterest’s strong positioning across several sector themes, including artificial intelligence and machine learning improvements in advertising technology, which the firm believes will expand the total addressable market and better serve small and medium-sized businesses.
The investment bank also noted that AI-driven product improvements should increase user time spent on the platform, while the broader acceleration in AI-native company advertising spend would benefit Pinterest’s revenue growth.
Mizuho expects Pinterest to continue benefiting from enabling and measuring users’ commercial activity on its platform, increasing monetization partnerships, improving first-party go-to-market strategies, and closing the gap in international monetization.
In other recent news, Pinterest Inc has seen a series of analyst updates following its recent quarterly performance. UBS has maintained a Buy rating with a $50 price target, highlighting mixed regional performance with challenges in the Asia-Pacific region but strong revenue growth in Europe and the Rest of the World. CFRA has increased its price target for Pinterest to $43, citing the company’s AI capabilities, while adjusting its 2025 earnings per share estimate to $1.72. Benchmark reiterated its Buy rating with a $48 price target, noting disappointing average revenue per user (ARPU) in the U.S. and Canada, but significant year-over-year ARPU growth in Europe and the Rest of the World.
JPMorgan raised its price target for Pinterest to $44, maintaining an Overweight rating and emphasizing a positive growth outlook. Meanwhile, Raymond James reiterated a Market Perform rating, acknowledging advancements in Pinterest’s advertising technology and expanding partnerships with companies like Instacart, Amazon, and Google. These developments reflect a varied outlook for Pinterest, with analysts recognizing both the company’s strengths and ongoing challenges.
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