Pinterest stock price target lowered to $40 from $45 at KeyBanc

Published 17/07/2025, 10:44
Pinterest stock price target lowered to $40 from $45 at KeyBanc

Investing.com - KeyBanc has lowered its price target on Pinterest Inc (NYSE:PINS) to $40.00 from $45.00 while maintaining an Overweight rating on the stock. The stock, currently trading at $36.08, shows strong financial health according to InvestingPro data, with an overall score of "GREAT."

The adjustment comes despite KeyBanc’s expectations of slight upside to Pinterest’s second-quarter revenue and EBITDA, which the firm attributes to a stable macroeconomic environment, product momentum, and operating leverage. The company has demonstrated solid performance with 17.81% revenue growth over the last twelve months and maintains strong liquidity with a current ratio of 8.41.

KeyBanc anticipates Pinterest will issue third-quarter guidance that is largely in line with market expectations, noting that the company’s advertising product cycle should continue scaling into the second half of 2025 and into 2026. Get deeper insights into Pinterest’s valuation and growth prospects with a InvestingPro subscription, which includes exclusive ProTips and comprehensive financial analysis.

The firm has introduced 2027 estimates for Pinterest, projecting revenue of $5.5 billion and EBITDA of $1.85 billion.

KeyBanc’s valuation framework for Pinterest is based on a 2027 EV/EBITDA multiple of 15.5x, which forms the basis for the revised price target.

In other recent news, Pinterest has seen a series of positive developments that could interest investors. TD Cowen raised its price target for Pinterest to $43, maintaining a Buy rating, based on strong advertising performance and projected revenue growth of 14.6% year-over-year by the second quarter of 2025. Similarly, Wells Fargo (NYSE:WFC) increased its price target to $42, citing robust user growth and improved margins, with an anticipated Q2 2025 revenue of $980 million, representing 15% year-over-year growth. Benchmark also reaffirmed a Buy rating with a $45 target, highlighting Pinterest’s strong first-quarter results and the potential for market share gains driven by the Performance+ product.

At its recent annual stockholder meeting, Pinterest announced the election of new directors and amendments to its bylaws and Certificate of Incorporation. These amendments include enhanced procedural requirements for shareholder nominations and updated indemnification procedures. Piper Sandler reported improvements in Pinterest’s advertising offerings, noting that Performance+ campaigns now have better pricing compared to standard campaigns, with outbound cost-per-clicks in May approximately 17% lower than standard campaigns.

Additionally, Wells Fargo noted the return of cross-border e-commerce advertisers, with Amazon (NASDAQ:AMZN)’s share of sponsored Pins stabilizing and the reappearance of Temu and Shein ads. These developments, along with Pinterest’s strategic advancements in advertising capabilities, are expected to contribute to its revenue growth and market positioning.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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