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Investing.com - Guggenheim raised its price target on Pinterest Inc (NYSE:PINS) to $44.00 from $39.00 on Monday, while maintaining a Buy rating on the social media company. The new target aligns with the broader analyst consensus, which ranges from $25 to $50. According to InvestingPro data, Pinterest’s stock has shown strong momentum with a 30.7% gain year-to-date.
The firm cited Pinterest’s early-stage monetization opportunity as a key factor in the decision, highlighting progress on the company’s Performance+ initiative, particularly its AI-related investments, as primary drivers of near-term revenue growth. The company’s strong financial position is evident in its "GREAT" overall financial health score from InvestingPro, with notably high cash flow and growth metrics.
Guggenheim forecasts Pinterest’s second-quarter revenue growth at 14.4%, toward the higher end of management’s guidance range of 12-15%. The firm noted that 70% of respondents in a July 11 buyside survey expected second-quarter revenue growth above 15%.
For the third quarter, Guggenheim estimates 14.7% growth, in line with buyside expectations of 14.1%-15.0% at the midpoint, with greater Performance+ contribution expected in the second half of the year.
The firm expects Pinterest’s profitability to continue increasing throughout the year, though at a slowing rate of margin expansion, primarily due to ramping AI-related investments.
In other recent news, Pinterest Inc is set to release its second-quarter earnings report, with several analysts adjusting their price targets and ratings ahead of the announcement. Benchmark has raised its price target to $48 while maintaining a Buy rating, viewing its revenue and EBITDA estimates as conservative. Jefferies has also increased its target to $35, expecting Pinterest’s revenue to meet or exceed the high end of its guidance range of $960-980 million. Stifel raised its price target to $46, noting mixed signals but seeing potential upside in the financial results. Morgan Stanley (NYSE:MS) upgraded Pinterest to Overweight, highlighting the positive impact of GPU-enabled innovation on ad efficiency and growth, raising its target to $45. KeyBanc, however, lowered its price target to $40, maintaining an Overweight rating despite expecting slight revenue and EBITDA upside. These developments reflect varying expectations among analysts regarding Pinterest’s upcoming financial performance.
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