2023-07-17 16:21:03 ET
Investment firm Evercore ISI upgraded Pinterest ( NYSE: PINS ) on Monday for several reasons, including "clear evidence" that digital advertising spending is stabilizing.
Analyst Mark Mahaney raised his rating on Pinterest ( PINS ) shares to outperform from in-line, along with a $41 price target, noting that there are signed a second-half recovery in ad spending, along with evidence of operational improvements that CEO Bill Ready has implemented.
Mahaney also said he is seeing a "fundamental" inflection point, with "material" revenue growth acceleration and substantial margin expansion over the next two to four quarters, with "very high double digit" EBITDA growth. Mahaney also said the current valuation at 27 times enterprise value-to-EBTIDA is reasonable, with EBITDA growing 30% and the company looking to generate "consistent" free cash flow, with free cash flow margins of 20% or more by 2025.
Pinterest ( PINS ) shares rose 1.5% on Monday and another 3.5% in extended-hours trading.
Analysts are largely bullish on Pinterest ( PINS ). It has a HOLD rating from Seeking Alpha authors , while Wall Street analysts rate it a BUY . Conversely, Seeking Alpha's quant system, which consistently beats the market, rates PINS a HOLD .
More on Pinterest
- Pinterest, Amazon partnership is live 'earlier than expected', says RBC
- Pinterest: Potential Amazon Boost
- Betting On Pinterest's Make-Or-Break Moment
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Pinterest upgraded by Evercore for several reasons, including stabilizing ad spending