© Reuters. Pinterest (PINS) growth outlook now favorable – BofA
Pinterest (NYSE:) was upgraded to Buy from Neutral, with the price target raised to $37 from $32 per share at BofA on Tuesday following the company’s 3Q earnings beat.
Analysts told investors that the “solid” beat and the company’s growth outlook are now favorable compared to peers.
Pinterest reported Q3 EPS of $0.28, $0.07 better than the analyst estimate of $0.21, while revenue for the quarter came in at $763 million versus the consensus estimate of $743.94 million.
The “position vs peers [is] much improved as q/q underperformance shifts to outperformance, expected in 4Q’23,” said the analysts. They added that the company is also much closer to the start of the Amazon (NASDAQ:) deal ramp, and they expect more acceleration in the first half of 2024.
The analysts also noted the social media company had a better expense discipline than expected. With the potential for further margin/EBITDA upside, they said the firm is above the Street for EBITDA.
Furthermore, Piper Sandler has renewed confidence in Pinterest’s new management team “given recent product execution and direct response (DR) disclosures.”
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