Pinterest, the Communication Services sector company, was revisited by a Wall Street analyst yesterday. Analyst Ronald Josey from Citi maintained a Buy rating on the stock and has a $50.00 price target.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Ronald Josey has given his Buy rating due to a combination of factors that highlight Pinterest’s strong performance and growth potential. The company’s third-quarter results showed impressive growth in monthly active users (MAUs) and EBITDA, both surpassing market expectations. Despite a slight shortfall in North American revenue, Pinterest’s global revenue grew by 17% year-over-year, driven by strong performance in Europe and other regions.
Additionally, Pinterest is making significant strides in capturing a larger share of advertising budgets, particularly with its newer ad products like Performance+, ROAS Bidding, and Local Inventory Ads. The company’s focus on engaging Gen Z users and enhancing features like Visual Search and shopping curation is also promising. Although the fourth-quarter revenue guidance is slightly below consensus, the overall outlook remains positive, with expected revenue growth and margin expansion as Pinterest continues to invest in its platform.
In another report released today, UBS also maintained a Buy rating on the stock with a $48.00 price target.