Pinterest (NYSE:PINS), the social media platform, was up in trading after top-rated RBC analyst Brad Erickson upgraded the stock from Hold to Buy and raised his price target to $46 from $32. This price target implies an upside potential of 29.87% at current levels.
The analyst’s bullish stance on the stock is driven by the sustained popularity of impulse purchases as Pinterest stands to benefit from the shift. Erickson pointed out that Google (GOOGL) and e-commerce giant Amazon (AMZN) are being favored by buyers who are more “intent-oriented.” However, it’s now common for such platforms and “impulse-heavy platforms,” like Pinterest, to implement each other’s strategies.
The analyst commented, “AMZN being a favorite mega-cap in ’24 aside, we believe PINS is both a way to play AMZN having more demand than supply for ads while also something of a hedge given the Temu/Shein fears, which we think are contributing to PINS’ growth.”
Is PINS a Good Stock to Buy?
Analysts remain cautiously optimistic about PINS stock with a Moderate Buy consensus rating based on 21 Buys and eight Holds. Year-to-date, PINS stock has surged by more than 50%, and the average PINS price target of $36.36 implies an upside potential of 2.2% at current levels.
