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Investing.com - Piper Sandler has raised its price target on Pinterest Inc (NYSE:PINS) to $35.00 from $34.00 while maintaining a Neutral rating on the stock. The social media platform’s shares are currently trading near their 52-week high of $40.90, having delivered an impressive 35% return year-to-date. InvestingPro data shows Pinterest maintaining a "GREAT" financial health score of 3.48.
The adjustment follows Pinterest’s recent earnings report, which Piper Sandler described as a "solid print" that was largely in line with expectations, though shares fell approximately 10% in after-hours trading due to weaker guidance. The company maintains robust fundamentals with a 79.6% gross profit margin and strong revenue growth of 17.8% over the last twelve months.
Piper Sandler noted that user engagement on the platform remains steady, with new tools like Performance+ having a positive impact on the business. The firm also highlighted growing engagement among male users as a positive development.
The research firm mentioned that Pinterest’s new partnership with Instacart (NASDAQ:CART) appears promising, adding another potential avenue for growth for the social media platform.
Despite these positive factors, Piper Sandler indicated it "struggles to see a material catalyst to drive the business and accelerate growth," which explains the maintained Neutral rating despite the slight price target increase.
In other recent news, Pinterest Inc. reported its second-quarter earnings, showcasing a mixed financial performance. The company posted revenue of $998 million, which surpassed the Street consensus of $976 million and represented a 17% year-over-year growth. Despite exceeding revenue expectations, Pinterest’s earnings per share (EPS) of $0.33 fell short of the forecasted $0.35. International markets contributed to the revenue upside, although higher sales and marketing expenses were noted. Analysts from Stifel and BofA Securities responded positively to these results, with both firms raising their price targets for Pinterest. Stifel increased its target to $47 from $46, while BofA Securities raised it to $44 from $41, both maintaining a Buy rating. Stifel highlighted strength in Europe and Rest of World markets as key drivers for the positive performance. However, the company’s performance in the U.S., Canada, Australia, and New Zealand was slightly below expectations. These developments reflect the latest insights into Pinterest’s financial standing and market performance.
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