economy
Pinterest has taken a beating in recent years. This analyst thinks it's time to buy
Pinterest has been fallen 24% this year, but analysts are split whether to buy or sell this stock
TL;DR
- TD Cowen analyst John Blackledge has designated Pinterest as its "best Smidcap Idea for 2026" with a price target of $38, representing an 83% upside.
- Blackledge's optimism is based on Pinterest's expected growth in the digital ad market, driven by favorable user trends, Performance+ adoption, and a broadening advertiser base.
- Despite a 75% fall from its 2021 peak, Pinterest shares have seen a more than 13% increase this quarter.
- Key bullish factors cited include the adoption of the AI-driven Performance+ ad suite, strong monthly active user growth (11% year-over-year in Q1), enhanced ad measurement tools, and the strategic acquisition of tvScientific.
- Bearish sentiment exists, with some analysts concerned about the shift in digital advertising due to AI, increased competition from larger platforms like Instagram, and Pinterest's reliance solely on ad revenue without subscription diversification.
- Rothschild analyst Joseph Barker downgraded Pinterest to Neutral, citing structural concerns and the platform's vulnerability compared to peers like Reddit and Snapchat.