Pinterest Inc. (NYSE:PINS) is one of the 11 Best Beaten Down Growth Stocks to Buy Now.
On February 3, KeyBanc trimmed its target price on Pinterest by 12.5% to $35 (from $40) while retaining its Overweight call on the company. The firm cited falling valuation multiples (P/E and EV/EBITDA) across the industry as the main factor influencing its decision. KeyBanc also added that it expects a volatile quarter for Pinterest due to intensifying competition for incremental ad budgets.
Photo by Souvik Banerjee on Unsplash
Mizuho echoed similar sentiments, cutting its target price on Pinterest to $35 (from $45) on February 3 while keeping an Outperform rating on the shares. The firm sees similar challenges in the short run for Pinterest’s fundamentals but believes that these are already priced into the shares.
These updates come just after Pinterest announced its global restructuring plan on January 26. The plan will involve cutting 15% of the company’s workforce over the next nine months and will cost $35 million to $45 million initially in restructuring charges.
BofA, in its January 28 research note, estimated that this move could lead to $300 million in annualized savings for Pinterest and could boost the company’s EBITDA margins to the low-30s. The bigger takeaway, however, is that this restructuring plan could be an indication that the weak ad revenue seen in 2025 has carried over to the 1st quarter of 2026, thus triggering the need for this restructuring plan.
Since the announcement of this restructuring plan, Pinterest’s stock price has fallen as much as 25.4% to $19.32 (from $25.90), before recovering slightly to $19.60. Despite this fall and the recent string of target price cuts over the past week, analysts still have a bullish view on Pinterest. This conviction is evident in the median analyst target price of $35.00, according to CNN data, implying a potential upside of 78.57%.
Pinterest Inc. (NYSE:PINS) is a pinboard-style photo-sharing website, headquartered in San Francisco, California, and founded in October 2008 by Benjamin Silbermann, Paul C. Sciarra, and Evan Sharp.
While we acknowledge the risk and potential of Pinterest Inc. (NYSE:PINS) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PINS and that has 10,000% upside potential, check out our report about this cheapest AI stock.
READ NEXT: 12 Best Cheap Stocks to Buy Right Now and Cathie Wood’s Stock Portfolio: Top 10 Stocks to Buy.
Disclosure: None. This article is originally published at Insider Monkey.
