KeyBanc Trims Target on Pinterest (PINS) to $35, Citing Falling Valuation Multiples

Pinterest Inc. (NYSE:PINS) is 1 of the 11 Best Beaten Down Growth Stocks to Buy Now.

On February 3, KeyBanc trimmed its people terms connected Pinterest by 12.5% to $35 (from $40) portion retaining its Overweight telephone connected the company. The steadfast cited falling valuation multiples (P/E and EV/EBITDA) crossed the manufacture arsenic the main origin influencing its decision. KeyBanc besides added that it expects a volatile 4th for Pinterest owed to intensifying contention for incremental advertisement budgets.

Photo by Souvik Banerjee connected Unsplash

Mizuho echoed akin sentiments, cutting its people terms connected Pinterest to $35 (from $45) connected February 3 portion keeping an Outperform standing connected the shares. The steadfast sees akin challenges successful the abbreviated tally for Pinterest’s fundamentals but believes that these are already priced into the shares.

These updates travel conscionable aft Pinterest announced its planetary restructuring program connected January 26. The program volition impact cutting 15% of the company’s workforce implicit the adjacent 9 months and volition outgo $35 cardinal to $45 cardinal initially successful restructuring charges.

BofA, successful its January 28 probe note, estimated that this determination could pb to $300 cardinal successful annualized savings for Pinterest and could boost the company’s EBITDA margins to the low-30s. The bigger takeaway, however, is that this restructuring program could beryllium an denotation that the anemic advertisement gross seen successful 2025 has carried implicit to the 1^st quarter of 2026, frankincense triggering the request for this restructuring plan.

Since the announcement of this restructuring plan, Pinterest’s banal terms has fallen arsenic overmuch arsenic 25.4% to $19.32 (from $25.90), earlier recovering somewhat to $19.60. Despite this autumn and the caller drawstring of people terms cuts implicit the past week, analysts inactive person a bullish presumption connected Pinterest. This condemnation is evident successful the median expert people terms of $35.00, according to CNN data, implying a imaginable upside of 78.57%.

Pinterest Inc. (NYSE:PINS) is simply a pinboard-style photo-sharing website, headquartered successful San Francisco, California, and founded successful October 2008 by Benjamin Silbermann, Paul C. Sciarra, and Evan Sharp.

While we admit the imaginable of Pinterest Inc. (NYSE:PINS) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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Disclosure: None. This nonfiction is primitively published astatine Insider Monkey.