RBC lifts Pinterest stock price target to $50 on Q4 performance

On Friday, RBC Capital Markets adjusted its outlook on Pinterest Inc (NYSE:PINS), raising the price target to $50 from the previous target of $48, while maintaining an Outperform rating on the shares. Currently trading at $39.48 with a market capitalization of $26.54 billion, Pinterest has shown strong momentum with a 16.7% price return over the past six months. The revision comes in the wake of Pinterest’s fourth-quarter earnings report, which surpassed the low expectations set by the market.

Brad Erickson, an analyst at RBC Capital, highlighted the positive aspects of Pinterest’s recent performance, noting the company’s effective strategy in enhancing user engagement and increasing the quality of its advertising content. According to InvestingPro data, Pinterest’s revenue grew by 17.7% in the last twelve months, with a robust gross profit margin of 78.9%. Pinterest’s efforts in delivering greater lead generation volume and value to advertisers were also acknowledged as contributing factors to the company’s success.

Erickson’s analysis indicates that these strategic moves are starting to yield tangible results. In response, RBC Capital has increased its EBITDA estimates for Pinterest for the year 2025 and has introduced projections for 2026. The raised price target reflects the firm’s confidence in Pinterest’s ongoing initiatives and its potential for continued growth.

The analyst also pointed out the recent rollout of Performance +, a feature designed to improve the platform’s ability to capture value and leverage content to boost user engagement. Erickson believes that Pinterest is in the early stages of enhancing its digital advertising capabilities, which have been historically underutilized.

Pinterest’s stock valuation, according to RBC Capital, is attractive, trading at 16 times the enterprise value to estimated EBITDA for 2026. InvestingPro analysis reveals the company maintains a strong financial health score of GOOD, with more cash than debt on its balance sheet and liquid assets exceeding short-term obligations. This assessment suggests that the company is making structural changes that could lead to substantial value creation for shareholders. For deeper insights into Pinterest’s valuation and 12 additional exclusive ProTips, visit InvestingPro’s comprehensive analysis platform.

In other recent news, Pinterest has been under review by several analyst firms following its Q4 earnings report and Q1 guidance. CFRA analyst Angelo Zino increased the price target for Pinterest to $53, maintaining a strong buy rating. The decision came after Pinterest posted an adjusted EBITDA of $471 million in Q4, surpassing both the previous year’s figure and consensus estimates. Revenue growth was reported at 18%, with monthly active users (MAUs) increasing by 11%.

Benchmark analysts reiterated their buy rating on Pinterest, maintaining a steady price target of $55. They highlighted the company’s progress in monetizing its unique first-party data and the potential for revenue growth from Pinterest’s Performance+ products. Piper Sandler adjusted its price target on Pinterest shares to $41, reaffirming a neutral rating. The firm acknowledged the improved revenue and EBITDA projections for Pinterest, but expressed caution due to the competitive nature of the market.

KeyBanc Capital Markets updated its outlook on Pinterest, increasing the price target to $46 while retaining an overweight rating. The firm noted Pinterest’s significant MAU growth and successful product initiatives. Finally, Rosenblatt Securities increased its price target for Pinterest to $51, continuing to recommend a buy rating. The adjustment came after Pinterest reported a year-over-year sales growth of 18% in Q4, slightly above analyst estimates.

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