Pinterest Analyst Upgrades Stock to ‘Buy’ with $38 Price Target, Cites AI-Driven Ad Growth and Strong User Metrics

Pinterest shares surged after TD Cowen analyst John Blackledge designated the social media platform as the firm’s “best Smidcap Idea for 2026,” setting a price target of $38, which implies an 83% upside and represents the highest forecast among analysts tracking the stock, according to LSEG data. Despite being down 25% year-to-date and roughly 75% below its 2021 peak, Pinterest has recently rebounded, rising more than 13% in the last quarter and 3% in the past month—outperforming the S&P 500’s 3% decline. Blackledge pointed to four key factors driving optimism: rapid adoption of Pinterest’s AI-powered Performance+ ad suite, which now handles 30% of lower-funnel revenue; 11% year-over-year growth in monthly active users to 631 million; continued innovation in ad measurement and campaign optimization; and the acquisition of tvScientific, which expands access to connected TV audiences. Oppenheimer analyst Jason Helfstein echoed some of these sentiments, noting that while near-term headwinds from tariffs, inflation, and reduced consumer spending are pressuring ad revenue, they are expected to be temporary. A total of 19 analysts recommend buying Pinterest shares—including Guggenheim and Mizuho—while 20 hold the stock amid concerns over sustained competitive pressures from larger platforms and limited revenue diversification beyond advertising. Rothschild analyst Joseph Barker remains neutral, arguing that Pinterest faces structural challenges in competing for direct-response ad dollars amid the AI-driven dominance of larger platforms, and believes the company lacks sufficient avenues for monetization outside of ads.

Source link