BMO Capital Sees AI Ad Improvements Supporting Growth at Pinterest (PINS)
Quick Take
BMO Capital predicts AI-driven ad enhancements will boost Pinterest's growth.
Key Points
- AI improvements expected to enhance ad performance.
- Pinterest's growth outlook remains positive.
- BMO Capital raises Pinterest's stock price target.
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~2 min readVardah Gill
2 min read
With a 5-year average revenue growth rate of 25.2%, Pinterest, Inc. (NYSE:PINS) is included among the 11 Best Long Term US Stocks to Buy Right Now.
On May 5, BMO Capital raised the firm’s price recommendation on Pinterest, Inc. (NYSE:PINS) to $30 from $28. It reiterated an Outperform rating on the shares. The analyst said the company posted solid Q1 revenue and adjusted EBITDA results that came in ahead of consensus estimates. Tariff-related pressure on some of Pinterest’s largest retail customers continued during the quarter, though improvements in the company’s AI-driven advertising platform helped offset some of those headwinds later in the period, according to a research note sent to investors.
Also on May 5, Roth Capital analyst Rohit Kulkarni raised the firm’s price goal on PINS to $25 from $18. He maintained a Neutral rating on the stock. The analyst said the company delivered a strong beat-and-raise quarter, with revenue topping expectations and Q2 guidance coming in above forecasts. The firm added that the quarter represented an encouraging sign that Pinterest’s AI investments are starting to generate measurable advertiser ROI and support faster revenue growth.
Pinterest, Inc. (NYSE:PINS) is a visual search and discovery platform. Its main service, Pinterest, is available through both its mobile app and website. People use Pinterest to discover ideas, and as they browse Pins, they refine their interests and explore new ideas.
While we acknowledge the potential of PINS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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— Originally published at finance.yahoo.com
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