Pinterest stock target raised to $46 at TD Cowen on strong Q4

On Friday, TD Cowen expressed confidence in Pinterest Inc (NYSE:PINS), increasing the company’s price target from $38.00 to $46.00 while maintaining a Buy rating. The decision came on the heels of Pinterest’s fourth-quarter earnings, which surpassed consensus estimates with a year-over-year revenue increase of 18%. The company’s EBITDA also beat expectations by 6%, attributed to significant growth in Average Revenue Per User (ARPU) and Monthly Active Users (MAU). According to InvestingPro data, Pinterest maintains strong financial health with a "GOOD" overall rating, supported by robust cash flow metrics and solid balance sheet fundamentals.

Pinterest’s performance in the fourth quarter was further bolstered by its forward-looking guidance for the first quarter of 2025, which projected revenues and adjusted EBITDA to be 10% and 18% above consensus estimates at their midpoints, respectively. Stifel analysts highlighted these projections as indicators of the company’s solid start to the year. InvestingPro analysis reveals that Pinterest holds more cash than debt on its balance sheet, with a remarkable current ratio of 7.9x, suggesting strong liquidity position.

The upward adjustment in Pinterest’s long-term estimates by TD Cowen is based on the anticipation of sustained revenue growth. This optimism is driven by several strategic initiatives, including AI-led user engagement improvements, increased advertising load, the introduction of Performance+, and the expansion of third-party partnerships.

The research firm’s commentary underscored the success of these initiatives, stating, "We raised L-T est’s on our expectation for durable long-term rev growth driven by initiatives incl. AI-led engagement & ad load growth, Performance+, and 3p partnerships; PT to $46, maintain Buy." This statement reflects a positive outlook for Pinterest’s continued expansion and innovation.

Pinterest’s recent financial results and the updated price target from TD Cowen suggest a strong market position and potential for growth, backed by the company’s strategic focus on technology and partnerships to enhance its platform and advertising capabilities.

In other recent news, Pinterest Inc has been the focus of multiple analyst upgrades following its Q4 earnings report. RBC Capital Markets raised its price target for Pinterest to $50, citing the company’s effective user engagement strategy and improved advertising content. Similarly, CFRA increased its target to $53, emphasizing the company’s successful Q4 results, which saw an 18% revenue growth and an 11% increase in monthly active users.

Benchmark also maintained its Buy rating on Pinterest, with a steady price target of $55, highlighting the company’s progress in monetizing its unique first-party data. Meanwhile, Piper Sandler lifted its price target to $41, noting Pinterest’s year-over-year growth surpassing anticipated benchmarks. Lastly, KeyBanc Capital Markets updated its outlook on Pinterest, increasing the price target to $46, reflecting the company’s significant monthly active user growth and successful product initiatives.

These recent developments indicate a positive trend in analyst sentiment towards Pinterest, largely driven by the company’s Q4 performance and growth strategies. The introduction of new features such as Performance+, aimed at improving the platform’s ability to capture value and boost user engagement, has also been noted as a potential growth catalyst. However, it’s important to note that these are projections and actual results may vary.

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