Rosenblatt raises Pinterest stock target to $51, maintains buy rating

On Friday, Rosenblatt Securities increased its price target for Pinterest Inc (NYSE:PINS) shares to $51 from the previous target of $46, while continuing to recommend a Buy rating for the social media company. According to InvestingPro data, Pinterest currently trades at a P/E ratio of 105, with analysts expecting continued profit growth this year. The adjustment comes after Pinterest reported its fourth-quarter earnings for 2024, showcasing a year-over-year sales growth of 18%, which was consistent with the growth rate in the third quarter and slightly above analyst estimates.

Pinterest provided guidance for the first quarter of 2025, anticipating constant currency growth of 17% at the higher end of the forecast range. The company’s strong financial position is evident in its impressive current ratio of 7.9, with InvestingPro analysis showing it holds more cash than debt on its balance sheet. This projection is considered stable or improved after accounting for the extra Leap Day in the previous year and an earlier Easter. The guidance is about 2% above the consensus but aligns with Rosenblatt’s model.

Despite the company’s solid earnings reports in 2024, Pinterest stock underperformed, falling 22% over the year. This decline was in stark contrast to the S&P 500, which saw a 23% increase. The market’s reaction was attributed to earnings that, although strong, did not meet the ’beat and raise’ expectations set after a promising investor day in September 2023. During this event, Pinterest introduced a new CEO and CFO, with backing from activist investor Elliott Management.

Following the earnings announcement, Pinterest’s stock showed indications of recovery in after-hours trading, suggesting a potential rebound from the previous year’s losses. The revised price target by Rosenblatt reflects a positive outlook for the company’s stock, as the firm maintains its Buy rating and expresses confidence in Pinterest’s performance moving forward.

In other recent news, Pinterest has seen a series of stock target upgrades from multiple analyst firms, indicating a positive shift in market sentiment. Raymond (NSE:RYMD) James has increased its target for Pinterest to $42, citing the company’s solid performance driven by its social AI and advertising technology. Similarly, Cantor Fitzgerald has lifted Pinterest’s stock price target to $48, following the company’s better-than-expected fourth-quarter results and promising first-quarter revenue growth projections.

JPMorgan also raised its Pinterest stock price target to $42, acknowledging the company’s impressive fourth-quarter results and first-quarter guidance. The firm noted significant growth in clicks to advertisers and increased active user numbers. BMO Capital has raised its Pinterest stock target to $46, attributing the upgrade to the company’s anticipated growth in direct response advertising revenue.

Finally, Goldman Sachs has increased its Pinterest stock price target to $47, following a strong fourth-quarter earnings report. The firm highlighted robust revenue growth, significant user growth and engagement, and an increase in lower-funnel advertisement revenue. These recent developments indicate a strong market faith in Pinterest’s strategic initiatives and future prospects.

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