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Investing.com - Stifel raised its price target on Pinterest Inc (NYSE:PINS) to $47.00 from $46.00 on Friday, while maintaining a Buy rating following the company’s second-quarter results. The stock has shown impressive momentum, delivering a 35% year-to-date return and trading near its 52-week high of $40.90. According to InvestingPro data, Pinterest maintains a "GREAT" financial health score of 3.48.
Pinterest reported quarterly results that exceeded overall expectations, primarily driven by strength in Europe and Rest of World markets, according to Stifel. The firm noted that U.S., Canada, Australia, and New Zealand (UCAN) performance fell marginally below elevated expectations that had formed after strong results from other advertising-based companies. The company maintains robust fundamentals with an impressive gross profit margin of nearly 80% and healthy liquidity, as revealed in InvestingPro’s detailed analysis.
The social media platform provided third-quarter revenue guidance ahead of expectations despite including some caution related to tariff uncertainty, while EBITDA dollars are expected to be in line with forecasts.
Stifel highlighted that management attributed the UCAN underperformance partly to de minimis changes and budget shifts to Europe and Rest of World markets, particularly from Chinese e-commerce advertisers, though these geographic shifts typically come with lower ad pricing.
The firm also noted positive developments in Pinterest’s business, including strong adoption of Performance+ features, which doubled lower-funnel revenue year-to-date, especially among mid-market advertisers, while return-on-ad-spend bidding opportunities launched in March may not yet be fully reflected in consensus estimates.
In other recent news, Pinterest reported its second-quarter earnings, which presented a mixed financial performance. The company posted revenue of $998 million, surpassing the Street consensus of $976 million and marking a 17% year-over-year growth. However, Pinterest’s earnings per share (EPS) were $0.33, slightly below the forecasted $0.35. Despite this shortfall in EPS, the company’s EBITDA was $251 million, exceeding expectations of $235 million, driven by international revenue gains despite increased sales and marketing expenses.
In response to these financial results, BofA Securities raised its price target for Pinterest to $44 from $41, maintaining a Buy rating. The analysts at BofA cited the strong second-quarter results as a reason for the target increase. These developments highlight recent activity surrounding Pinterest’s financial performance and market position.
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