Jefferies analyst James Heaney CFA has maintained their bullish stance on PINS stock, giving a Buy rating today.
James Heaney CFA has given Pinterest a Buy rating due to a combination of factors that suggest the company’s potential for revenue growth and margin expansion. Despite a slight miss in Q4 revenue and conservative guidance for Q1, Pinterest has demonstrated solid user growth, with monthly active users (MAUs) exceeding expectations, particularly in Europe. This growth is attributed to platform improvements and new product features like Collages, which enhance user engagement. The announcement of a third-party partnership with Google is also expected to significantly contribute to revenue growth in the fiscal year 2024.
Additionally, Pinterest has shown considerable EBITDA margin improvement, outperforming the guidance with a year-over-year expansion. This indicates efficient cost management and the potential to achieve a low 30% EBITDA margin in the foreseeable future. While Q4 revenue growth was only in line with guidance and macro challenges have had some impact, Heaney remains optimistic about the revenue growth acceleration, especially considering new product rollouts and partnerships. These factors, along with a maintained price target, support the analyst’s confidence in Pinterest’s value proposition, leading to the Buy rating.
In another report released today, BMO Capital also initiated coverage with a Buy rating on the stock with a $45.00 price target.
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Pinterest (PINS) Company Description:
Founded in 2000, California-based Pinterest, Inc. provides a visual discovery engine in the United States and internationally. The company operates a pinboard-style photo-sharing website and allows users to create and manage theme-based image collections such as events, interests, and hobbies.
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