20 Most Favored Communication Services Stocks According to Hedge Funds

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10. Pinterest Inc. (NYSE:PINS)

Sector/Industry: Communication Services (Internet Content & Information)

Share Price: $27.49

Potential Upside: 38.6%

Number of Hedge Fund Holders: 66

Pinterest Inc. (NYSE:PINS) is one of the best communication services stocks according to Hedge Funds.

Shweta Khajuria from Wolfe Research reiterated her bullish views on Pinterest Inc. (NYSE:PINS), assigning a Buy rating on January 5. Despite a downward revision in the target price from $36 to $33, Khajuria still expects a 20% upside potential.

The analyst expects a continued rally in Internet stocks following 3 years of outperformance. She expects a favorable sentiment driven by macroeconomic growth, AI-linked developments, and larger spending on products.

BMO Capital analyst Brian Pitz also reaffirmed his outperform rating on Pinterest Inc. (NYSE:PINS) on December 16. Pitz gave a Buy call and estimated a $35.00 price target, which leads to an upside of over 27%.

Pitz shed light on the company’s recent strategic acquisition of tvScientific, which allows advertisers to connect with high-intent customers through connected TV (CTV) inventory. Moreover, this move will make advertising more effective by sending high-intent signals to advertisers through the company’s platform. Pitz also acknowledged a healthy balance sheet for Pinterest Inc. (NYSE:PINS), carrying more cash than debt.

Pinterest Inc. (NYSE:PINS) is an online visual search and discovery platform that operates globally. It enables creativity by allowing users to share and search for a wide range of ideas covering different topics. This could include fitness, style, recipes, art, and more. It also allows users to engage with advertisers, which is a key revenue source for the business.

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