Pinterest stock outlook: Raymond James sees upside to $33

on Apr 7, 2023
  • Raymond James initiates Pinterest Inc with an outperform rating.
  • Analyst Aaron Kessler sees upside in "PINS" to $33 a share.
  • Pinterest stock is already up about 25% versus the start of 2023.

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Pinterest Inc (NYSE: PINS) has already gained about 25% this year but a Raymond James analyst is convinced it’s not done pleasing its shareholders just yet.

Pinterest stock could climb another 20%

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Aaron Kessler assumed coverage of the social media company on Friday with an outperform rating. His $33 price target suggests another 20% upside from here.

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The analyst is bullish on Pinterest stock primarily because he expects the company to steadily grow over the long term. His research note reads:

Pinterest’s unique visual discovery platform and high-intent user base provides an attractive platform for advertisers, [and] we expect steady user growth going forward and increasing engagement metrics.

In February, the image sharing platform reported better-than-expected earnings for its fiscal fourth quarter as Invezz reported HERE. Revenue, however, came in shy of estimates.

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Pinterest can navigate the advertising headwinds

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Pinterest Inc relatively less exposed to the ad privacy headwinds as well. Put together with its high-intent userbase, Kessler expects it to outperform in the midst of a macro slowdown.

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With revenue growth, the Raymond James analyst is confident that Pinterest could nearly double its margins from 16% in 2022 to over 30%. He added:

We expect double-digit long-term revenue growth driven by continued product improvements for both Pinner and advertisers, increasing focus on shopping/eCommerce, video, and international.

Pinterest stock could also benefit from the company’s commitment to turning leaner and cutting costs. To that end, it announced plans of cutting 150 jobs in February.  

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