Pinterest stock price target lowered to $34 at Cantor Fitzgerald

Investing.com - Cantor Fitzgerald lowered its price target on Pinterest Inc (NYSE:PINS) to $34.00 from $40.00 on Wednesday, while maintaining an Overweight rating on the stock. The new target aligns closer with InvestingPro’s Fair Value assessment, which suggests Pinterest is currently undervalued despite trading at high valuation multiples across several metrics.

The price target reduction follows Pinterest’s third-quarter results, which showed revenues in line with expectations and EBITDA 3% above Street estimates. However, the company’s fourth-quarter guidance of 14-16% year-over-year revenue growth fell below prior Street estimates. This guidance represents a slowdown from the 17% revenue growth Pinterest achieved over the last twelve months, according to InvestingPro data.

Pinterest identified pockets of weakness from large US-based retailers facing trade-related pressure and declining spend from APAC advertisers as primary near-term headwinds to growth. The company continues to see healthy adoption of ad products including P+ ROAS bidding, and user engagement remains strong.

The social media platform’s second-half revenue growth of 16% lags behind large digital media platforms such as Meta, and the path to 20%+ growth remains unclear. Pinterest shares were trading down 20% after market close, compared to flat Nasdaq futures.

Cantor Fitzgerald revised its fiscal year 2026 revenue and EBITDA estimates slightly lower, resulting in the new price target, but maintained its Overweight rating citing "compelling valuation for shares."

In other recent news, Pinterest Inc reported third-quarter earnings that met expectations, although the company’s outlook for the fourth quarter appears muted. Guggenheim noted Pinterest’s guidance for fourth-quarter revenue growth of 14-16%, which falls short of pre-earnings expectations and suggests a slowdown in domestic revenue. Despite this, international revenue growth is accelerating. Several analyst firms have adjusted their ratings and price targets for Pinterest. Monness, Crespi, Hardt downgraded the stock from Buy to Neutral, citing concerns over Pinterest’s competitive position in the generative AI landscape. Piper Sandler also maintained a Neutral rating while lowering its price target to $33, pointing to worsening U.S. revenue trends. Rosenblatt downgraded Pinterest from Buy to Neutral, reducing its price target to $30 due to competition concerns with AI chatbots. Meanwhile, Bernstein lowered its price target to $40, maintaining an Outperform rating, and highlighted mixed impacts from AI on Pinterest’s user engagement.

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