Pinterest stock outlook remains mixed as Raymond James reiterates Market Perform

Published 08/08/2025, 14:30
Pinterest stock outlook remains mixed as Raymond James reiterates Market Perform

Investing.com - Raymond (NSE:RYMD) James has reiterated its Market Perform rating on Pinterest Inc (NYSE:PINS), maintaining a cautious stance despite acknowledging positive developments in the company’s advertising technology. The stock, currently trading near its 52-week high of $40.90, has delivered a strong year-to-date return of 35%. According to InvestingPro analysis, Pinterest maintains excellent financial health with a "GREAT" overall rating.

The firm cited encouraging innovation across Pinterest’s advertising stack, including a new generative retrieval model, expanded conversion model signals, and Pinterest Plus features. Raymond James also noted Pinterest’s growing partnerships with major tech companies, having added Instacart (NASDAQ:CART) to existing collaborations with Amazon (NASDAQ:AMZN) and Google (NASDAQ:GOOGL).

Pinterest reported second-quarter revenue growth of 17% (16% FX neutral), exceeding Street expectations of 14%. The company’s adjusted EBITDA reached $251 million, representing a 25.1% EBITDA margin that was 100 basis points ahead of Street forecasts.

Despite these positive results, Raymond James expressed concerns about Pinterest’s third-quarter revenue guidance of 16% growth (15% FX neutral) at the midpoint, which the firm suggested might fall short of elevated investor expectations. The company’s EBITDA guidance of $292 million, representing a 28% margin, also missed both Street and investor expectations.

Raymond James indicated it needs improved visibility into Pinterest’s engagement-driven impression growth and better understanding of how increased volumes of generative AI creative assets might impact potential acceleration toward high-teens FX-neutral growth before becoming more positive on the stock.

In other recent news, Pinterest Inc reported second-quarter 2025 revenue of $998 million, marking a 17% increase year-over-year and surpassing analyst expectations of $976 million. The company’s EBITDA also exceeded forecasts, reaching $251 million compared to the anticipated $235 million. Following these strong earnings results, several financial firms adjusted their price targets for Pinterest. TD Cowen raised its target to $44, while BofA Securities also set a new target of $44, both maintaining a Buy rating. Rosenblatt Securities adjusted its price target to $49, citing a steady growth trajectory for the company. Stifel increased its target to $47, noting strong performance in Europe and other international markets. Piper Sandler raised its target to $35, maintaining a Neutral rating, despite weaker guidance affecting after-hours trading. These developments highlight a positive reception from analysts regarding Pinterest’s recent financial performance.

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