Analyst John Blackledge of TD Cowen maintained a Buy rating on Pinterest, retaining the price target of $44.00.
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John Blackledge has given his Buy rating due to a combination of factors including Pinterest’s strong revenue growth and impressive user engagement metrics. The company’s third-quarter revenue increased by 16.8% year-over-year, aligning with expectations, and was bolstered by significant growth in monthly active users and a 54% rise in impressions. Despite a decline in ad pricing, the monetization efforts were effective, with international markets contributing to a shift towards lower-priced inventory.
Additionally, Pinterest’s adjusted EBITDA for the third quarter exceeded estimates by 3.6%, driven by lower-than-expected sales and marketing expenses. Although the fourth-quarter revenue guidance was slightly below consensus, the EBITDA guidance remained in line, reflecting management’s confidence in margin expansion. These positive financial indicators, alongside strategic initiatives like the launch of AI tools, support the Buy rating and the $44 price target.
In another report released on November 3, Evercore ISI also maintained a Buy rating on the stock with a $50.00 price target.