Pinterest (PINS – Research Report), the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst Eric Sheridan from Goldman Sachs reiterated a Buy rating on the stock and has a $41.00 price target.
Eric Sheridan has assigned a Buy rating to Pinterest (ticker PINS) based on a well-rounded evaluation of the company’s recent performance and strategic initiatives. The company’s fourth-quarter report indicated strong growth in monthly active users and adjusted EBITDA, surpassing Goldman Sachs’ and other street estimates. Although digital ad revenues in the last part of the quarter were only in line with prior expectations, there is an anticipated slight acceleration in revenue as Pinterest moves forward. The company’s efforts to create more shoppable content and direct response advertising budgets, along with beneficial partnerships, particularly with Google, are expected to enhance Pinterest’s monetization capabilities, especially in international markets.
Sheridan’s confidence in Pinterest is further bolstered by the management’s commitment to long-term strategies aimed at diversifying advertiser base, innovating products, and leveraging user intent to improve revenue trajectories. This focus is anticipated to result in above-industry average revenue growth over the next two to three years. Despite a slight reduction in the price target from $42 to $41, the reiteration of the Buy rating reflects a positive outlook on Pinterest’s ability to capitalize on its shopping and commerce initiatives, deepen user engagement across different media types, and expand international monetization efforts, positioning it for continued success in the competitive digital advertising space.
According to TipRanks, Sheridan is a 5-star analyst with an average return of 12.5% and a 57.88% success rate. Sheridan covers the Communication Services sector, focusing on stocks such as Netflix, Roblox, and Groupon.
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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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