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On Friday, Piper Sandler confirmed its Neutral stance on Pinterest Inc (NYSE:PINS) shares, maintaining a price target of $34.00. The decision came after Pinterest’s stock experienced a surge of approximately 10% in after-hours trading following the release of its second-quarter 2025 guidance. According to InvestingPro data, the company’s stock currently trades at $30.60, showing a -34.68% return over the past year, with strong financial health metrics including a current ratio of 8.41. The guidance projected a year-over-year growth of 12-15%, aligning with Wall Street expectations and providing a positive outlook despite prevailing economic uncertainties.
The firm acknowledged Pinterest’s resilience in navigating a challenging business climate, expressing that the guidance was commendable. However, Piper Sandler expressed difficulty in identifying a significant driver that could propel the company’s business further. In light of the recent results, Piper Sandler increased its 2025 revenue and EBITDA forecasts for Pinterest, noting a more favorable outcome than previously anticipated in their analysis. The company maintains impressive profitability with a 79.57% gross margin and strong revenue growth of 17.81% over the last twelve months.
Nevertheless, the research firm pointed out that the guidance and results still seemed to fall short of the expectations established during Pinterest’s 2023 Analyst Day. Even with adjusted estimates, Piper Sandler chose not to alter the price target, reiterating the Neutral rating. The firm cited the competitive advertising market for small and medium-sized businesses as a continuing challenge for Pinterest. InvestingPro analysis reveals that Pinterest holds more cash than debt on its balance sheet and maintains liquid assets exceeding short-term obligations, with 8 additional exclusive insights available to subscribers.
In other recent news, Pinterest Inc. reported a 16% year-over-year increase in revenue for the first quarter of 2025, reaching $855 million, which exceeded expectations of $848.27 million. However, the company’s earnings per share (EPS) of $0.23 fell short of the anticipated $0.26. Analysts have responded with optimism; KeyBanc Capital Markets increased its price target for Pinterest to $40, maintaining an Overweight rating, while Citi raised its target to $41, reiterating a Buy rating. Jefferies also adjusted its price target upward to $31, holding a neutral stance with a Hold rating. Pinterest’s second-quarter revenue guidance suggests a year-over-year increase of 12-15%, slightly above Wall Street expectations. The company has seen notable success with its Performance+ advertising program, which has outperformed traditional campaigns in 80% of cases. Additionally, Pinterest’s user engagement has improved, with monthly active users growing by 10% year-over-year, reaching 570 million globally. These developments reflect Pinterest’s strategic focus on AI-driven innovations and its ability to adapt to market challenges.
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