Pinterest Rallies After Analyst Says Recent Pullback Creates Attractive Buying Opportunity: Retail Sentiment Diverges

Shares of social e-commerce company Pinterest, Inc. (PINS) rallied strongly on Monday, with part of the upside attributable to positive commentary issued by an analyst.

Guggenheim analyst Michael Morris on Monday upgraded Pinterest stock to ‘Buy’ from ‘Neutral’ and lifted the price target to $40 from $39, Barron’s reported. The updated price target implied a nearly 18% upside for the stock from the current levels.

Morris said, “We believe that the recent share price pullback creates an attractive opportunity to invest in the still early-stage global user, monetization and profit growth opportunity at Pinterest.”

The Guggenheim analyst expects Pinterest to improve monetization faster than the overall digital advertising market from 2025 to 2027 as people increasingly use the platform and the adoption of artificial intelligence (AI) technology improves ad experience.

Morris also sees Pinterest as relatively insulated from any potential ad market downturn. As opposed to companies with greater brand exposure, Pinterest derives more than two-thirds of its revenue from performance-based advertisers, he added.

The report also noted that BofA analyst Justin Post echoed the same sentiment. Notwithstanding the macro-related advertiser spending risk, the analyst expects the company to maintain growth due to growing traffic and improving monetization.

On Stocktwits, retail sentiment toward the stock stayed ‘bearish’ (35/100), while the message volume remained ‘high.’

A bullish watcher recommended fellow retailers to buy the stock before it gets expensive.

Pinterest stock has added over 17% this year after declining nearly 22% in 2024. The strength seen in the stock this year is attributable to the company crossing $1 billion in quarterly revenue in the fourth quarter and the upbeat guidance,

The stock jumped 5% to $34.04 on Monday. The Koyfin-compiled consensus price target for the stock is $45.86.

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