Pinterest stock price target lowered to $33 from $35 at Piper Sandler

Investing.com - Piper Sandler has reduced its price target on Pinterest Inc (NYSE:PINS) to $33.00 from $35.00 while maintaining a Neutral rating on the social media company’s stock. Currently trading at $32.91, Pinterest appears slightly undervalued according to InvestingPro Fair Value estimates, despite trading at a high EBITDA multiple of 72.7x.

The price target adjustment follows Pinterest’s latest quarterly results, which Piper Sandler described as "mostly inline" with expectations, though U.S. revenue trends have worsened according to the research firm. InvestingPro data shows Pinterest achieved 17% revenue growth over the last twelve months, with analysts forecasting 16% revenue growth for the fiscal year.

Pinterest shares fell approximately 15% in after-hours trading following the earnings release and fourth-quarter guidance that came in slightly below Street expectations. This drop comes despite Pinterest’s strong financial health score of 3.44 (rated as "GREAT" by InvestingPro) and its impressive P/E ratio of 12.1.

The research firm noted that while Pinterest’s user engagement remains steady, it is not showing signs of acceleration, stating that performance has been "fine" but lacking clear catalysts to drive business growth.

Piper Sandler made minor adjustments to its estimates for Pinterest, resulting in the $2 reduction in price target, while maintaining its neutral stance on the stock.

In other recent news, Pinterest Inc reported third-quarter earnings that met expectations, despite facing challenges in various sectors. Analysts have adjusted their outlook on the company’s stock, with Rosenblatt downgrading Pinterest from Buy to Neutral due to concerns over AI chatbot competition. Guggenheim maintained a Buy rating but lowered its price target to $38, citing slower-than-expected fourth-quarter revenue growth guidance. Similarly, Bernstein reduced its price target to $40, while maintaining an Outperform rating, pointing to mixed impacts from generative AI on user engagement.

UBS also lowered its price target to $48, maintaining a Buy rating and highlighting retail headwinds affecting revenue in the US and Canada. RBC Capital followed suit, reducing its price target to $38 and maintaining an Outperform rating, due to tariff-related challenges impacting Pinterest’s advertising business. Despite these downgrades, international revenue growth, particularly in the European Union and Rest of World regions, continued to accelerate. The adjustments reflect broader concerns about domestic revenue slowdown and tariff impacts on large retail advertisers. These developments provide investors with a clearer picture of Pinterest’s current financial landscape.

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