TD Cowen maintains Buy on Pinterest shares, $46 target

Published 13/03/2025, 17:00
TD Cowen maintains Buy on Pinterest shares, $46 target

On Thursday, TD Cowen reiterated its Buy rating on Pinterest Inc (NYSE:PINS) with a price target of $46.00, well above the current trading price of $31.62. The endorsement aligns with the broader analyst consensus, as InvestingPro data shows 11 analysts have recently revised their earnings expectations upward. The endorsement comes amid positive feedback on Pinterest’s Performance+ suite of advertising products. According to insights from a digital ad agency, 80% of their advertisers using Pinterest are employing features from the Performance+ suite. Notably, those who have adopted the Performance+ Creative tool have experienced a 19% increase in checkout revenue.

The agency’s testing of the Performance+ Return on Ad Spend (ROAS) bidding tool has also been fruitful, leading to substantial improvements in prospecting for one of the agency’s major Pinterest advertisers. This feedback underscores the effectiveness of Pinterest’s advertising solutions and their potential impact on advertiser performance.

The continued confidence in Pinterest’s advertising suite signals a robust outlook for the company’s revenue growth, particularly as it expands its Performance+ offerings. This optimism is supported by Pinterest’s impressive 19.35% revenue growth and industry-leading gross profit margin of 79.42%. The suite’s ability to drive higher conversion rates and improve ROAS appears to be resonating well with advertisers, which could translate into sustained demand for Pinterest’s ad products.

TD Cowen’s affirmation of the $46 price target suggests that Pinterest’s stock is poised to perform well in the market, reflecting the company’s innovative approach to digital advertising. This positive outlook is based on the tangible results advertisers are seeing with the Performance+ suite, indicating Pinterest’s strong position in the competitive digital ad space.

The Buy rating and price target maintained by TD Cowen highlight Pinterest’s potential for continued growth and its appeal to investors looking for opportunities in the digital advertising sector. As the company progresses with its Performance+ suite, it remains to be seen how this will further shape Pinterest’s financial performance and market valuation. For deeper insights into Pinterest’s growth potential and comprehensive analysis, investors can access the full company research report on InvestingPro, which includes detailed financial health metrics and additional analyst recommendations.

In other recent news, Pinterest Inc has seen a series of analyst upgrades following its strong fourth-quarter earnings report. The company reported an 18% increase in year-over-year revenue, with its EBITDA surpassing expectations by 6%. This performance has led to several analysts raising their price targets for Pinterest. TD Cowen increased its target to $46, RBC Capital Markets lifted it to $50, CFRA set a new target at $53, and Benchmark maintained a target of $55, while Piper Sandler adjusted its target to $41, maintaining a Neutral rating. Analysts have highlighted Pinterest’s strategic initiatives, such as AI-driven user engagement and advertising enhancements, as key factors in its growth. The introduction of new features like Performance+ is seen as a positive step towards improving the platform’s advertising capabilities. Additionally, Pinterest’s forward-looking guidance for the first quarter of 2025 has been well-received, with revenue and adjusted EBITDA projections above consensus estimates. The company’s focus on enhancing its platform and expanding partnerships has contributed to an optimistic outlook from several firms.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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