Analyst Brian Nowak of Morgan Stanley maintained a Buy rating on Pinterest, retaining the price target of $41.00.
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Brian Nowak has given his Buy rating due to a combination of factors that suggest potential for future growth despite recent challenges. Pinterest’s revenue growth has been slower than anticipated, partly due to a lack of diversity among advertisers and slower innovation compared to peers. However, the company has shown significant improvements in engagement metrics, such as a 40% year-over-year increase in outbound clicks to advertisers and a 100% increase in unique shopping SKUs with paid ad impressions.
Looking ahead, Pinterest has several promising initiatives in the pipeline, including the Pinterest Assistant, personalized content collections, and enhanced reporting tools for advertisers. These developments could enhance user engagement and provide more value to advertisers, potentially driving revenue growth. Nowak’s Buy rating reflects a belief in Pinterest’s ability to capitalize on these opportunities and improve its financial performance over time.
In another report released today, Goldman Sachs also maintained a Buy rating on the stock with a $36.00 price target.