Piper Sandler raises Pinterest stock price target to $41

On Friday, Piper Sandler adjusted its price target on shares of Pinterest Inc (NYSE:PINS), elevating it to $41.00 from the previous figure of $36.00, while reaffirming a Neutral rating on the stock. The revision followed Pinterest’s first-quarter guidance for 2025, which indicated a year-over-year growth of 13-15%, surpassing the anticipated benchmarks of approximately 10% growth. The company’s shares experienced a surge, climbing by more than 18% after the market closed, with the stock now trading at $40.05. According to InvestingPro data, analyst targets for Pinterest range from $28 to $51, suggesting mixed opinions about the company’s valuation.

The guidance provided by Pinterest was received positively, as it exceeded the lower-than-expected projections and demonstrated the company’s capacity to navigate through challenging year-over-year comparisons. The company’s strong financial position is evident in its InvestingPro health score of GOOD, with robust metrics including a current ratio of 7.9 and more cash than debt on its balance sheet. Despite the uplift in guidance, Piper Sandler’s analysts chose to maintain a Neutral stance on Pinterest, citing a preference for Reddit (NASDAQ:RDDT) within the same sector.

In their commentary, Piper Sandler analysts acknowledged the improved revenue and EBITDA projections for Pinterest, which contributed to the revised price target. The firm’s decision to maintain a Neutral rating was influenced by the competitive small to mid-sized (SMID) advertising landscape and the fact that the guidance still fell short of the benchmarks set during the company’s Analyst Day.

Moreover, Pinterest’s plans to increase its workforce, with headcount expected to grow in the mid-teens percentage range year-over-year, were noted. The analysts’ discounted cash flow (DCF) analysis led to the increase in the price target, which now reflects the higher estimates. Despite the positive outcome for the first quarter of 2025, the analysts expressed continued caution due to the competitive nature of the market and the company’s performance relative to previous expectations. With a revenue growth of 17.7% in the last twelve months and strong profitability indicators, Pinterest shows promise, though it trades at relatively high multiples. Discover more insights and 12 additional ProTips for Pinterest with a subscription to InvestingPro, including detailed valuation analysis and comprehensive financial health metrics.

In other recent news, Pinterest Inc has been the subject of several analyst upgrades. KeyBanc Capital Markets has raised the stock target to $46, citing the company’s strong growth and successful product initiatives. In parallel, Rosenblatt Securities increased its target to $51, maintaining a buy rating after Pinterest reported an 18% year-over-year sales growth. Similarly, Raymond (NSE:RYMD) James lifted the stock target to $42, highlighting the company’s performance driven by its social AI and advertising technology. Cantor Fitzgerald also increased the stock target for Pinterest to $48, following the company’s robust holiday season performance. Lastly, JPMorgan raised the stock price target to $42, acknowledging Pinterest’s impressive Q4 results and Q1 guidance. These are recent developments, reflecting the market’s positive outlook on Pinterest’s growth trajectory and strategic initiatives.

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