SNAP - Pinterest Shares Surge As 7 Analysts Revise Forecasts After Strong Q3 Print | Benzinga
Shares of Pinterest Inc (NYSE: PINS) spiked higher on Tuesday after the company reported strong third-quarter earnings.
The results came amid an exciting earnings season. Here are some key analyst takeaways from the earnings release.
BofA Securities On Pinterest
Analyst Justin Post upgraded the rating from Neutral to Buy, while raising the price target from $32 to $37.
Pinterest's position versus its peers has significantly improved, as every quarter it shifts from underperformance towards outperformance, which is expected in the fourth quarter, Post said in the upgrade note.
The company has "better expense discipline than expected with potential for further margin/EBITDA upside, we are above Street for EBITDA," the analyst wrote. "Renewed confidence in new mgmt team given recent product execution and direct response (DR) disclosures," he added.
KeyBanc Capital Markets On Pinterest
Analyst Justin Patterson maintained an Overweight rating, while raising the price target from $35 to $37.
Pinterest reported its third-quarter revenues, EBITDA and MAUs (monthly active users) higher than the Street expectations, Patterson said in a note.
The company’s results "reinforce that growth is reaccelerating while expense controls remain intact, resulting in a ~600 bps inflection in 2023E EBITDA margin,” the analyst stated. "We anticipate an annual margin expansion cadence of 200-300 bps y/ y in 2024 and 2025, reflecting mid-teens growth from ...