Analyst Ronald Josey of Citi maintained a Buy rating on Pinterest (PINS – Research Report), with a price target of $47.00.
Ronald Josey has given his Buy rating due to a combination of factors including Pinterest’s enhanced engagement and promising ad innovations. The integration of AI to boost content relevance has led to increased user engagement, as evidenced by the rise in the WAU/MAU ratio. This improvement is expected to continue, enhancing Pinterest’s AI-driven personalized content recommendations.
Additionally, Pinterest’s introduction of new ad products like Direct Links and Performance Plus is seen as a driver for long-term growth, creating more opportunities for advertisers and increasing clicks by 90% year over year. The company’s ongoing expansion of third-party demand contributions also strengthens its market presence, while the expected continued growth in adjusted EBITDA margins further supports the positive outlook.
Josey covers the Communication Services sector, focusing on stocks such as Meta Platforms, Alphabet Class A, and Snap. According to TipRanks, Josey has an average return of 29.2% and a 60.25% success rate on recommended stocks.
In another report released today, TD Cowen also maintained a Buy rating on the stock with a $46.00 price target.
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