Raymond James analyst Josh Beck has reiterated their bullish stance on PINS stock, giving a Buy rating today.
Josh Beck has given his Buy rating due to a combination of factors including Pinterest’s progress with its advertising technology and the potential for increased revenue from shopping and third-party ads. Despite a slight revenue shortfall in comparison to Street expectations, this was largely attributed to a transient headwind in the food & beverage sector, which is expected to be a short-term issue. Moreover, Pinterest’s EBITDA has outperformed, hinting at a robust underlying financial health.
Furthermore, Beck is optimistic about the mid to long-term growth prospects for Pinterest, bolstered by the company’s advertising stack improvements which are already attracting more performance budget allocations. The anticipated normalization of investments in AI talent and sales & marketing by 2025 is also expected to contribute to EBITDA margin improvements. Additionally, strategic partnerships with companies like Google for international markets could further accelerate Pinterest’s revenue growth, reinforcing the platform’s position in the digital ad space. Beck’s $45 price target reflects these factors, valuing Pinterest at 23.5 times its projected 2025 enterprise value to EBITDA ratio.
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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