Justin Post, an analyst from Bank of America Securities, reiterated the Buy rating on Pinterest. The associated price target was lowered to $39.00.
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Justin Post’s rating is based on several key factors that suggest a positive outlook for Pinterest despite some near-term challenges. The company experienced a slight revenue decline due to tariff-related advertising cuts by large retailers, but its underlying user engagement remains strong, with global monthly active users exceeding expectations. Pinterest’s advancements in ad performance capabilities, such as the Performance+ tool, which has shown a significant increase in retailer conversion rates, are expected to enhance monetization once tariff pressures subside.
Moreover, Pinterest’s valuation appears attractive, trading at the lower end of its historical range, which suggests potential for upside. The company is also in the early stages of leveraging AI to improve ad performance, which could further boost its competitive position. With the expectation of improved relative monetization performance and margin expansion opportunities, Justin Post reiterates a Buy rating, seeing the stock as oversold and undervalued at current levels.
Post covers the Communication Services sector, focusing on stocks such as Alphabet Class A, Meta Platforms, and Alphabet Class C. According to TipRanks, Post has an average return of 24.7% and a 70.30% success rate on recommended stocks.
In another report released today, TD Cowen also maintained a Buy rating on the stock with a $44.00 price target.