Jefferies analysts reaffirm Buy rating on Pinterest stock
Analysts at Jefferies have named Pinterest (PINS) as a top pick, reiterating their Buy rating on the stock and setting a price target of $46. The firm's bullish stance on Pinterest is underpinned by the potential for revenue growth driven by the company's partnerships with industry giants Amazon (AMZN) and Google (GOOG, GOOGL).
Yahoo Finance's Julie Hyman and Josh Lipton break down the details.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor's note: This article was written by Angel Smith
Video Transcript
JOSH LIPTON: Another analyst call of the day here is Pinterest. Jefferies reiterating their buy rating at $46 price target, outlining multiple ways investors could win on this name. So Pinterest is interesting, Julie, been a rocky start here, it's in the red so far this year. But the team at Jefferies ran the numbers, they still like this name. They would be buying on this weakness, obviously, say it's a top pick, in their words. They reiterate their buy, see potential for 20% plus revenue growth in '24.
JULIE HYMAN: Yeah. And they too are above the street just like the call we just talked about, the Street's at 17%, they're at 20%. They also talk about that the next leg of growth could be driven by Amazon and Google partnerships that that should add incrementally to and, and significantly to revenue growth, and also that there's potential for margin expansion this year and beyond this year. So those are some of the points that they are looking at.
JOSH LIPTON: They did offer their clients some reasons, like what are the downside risks to this call. They said if user growth slows, engagement, they did note, is still lower than rivals. If new retail partnerships fail to drive material revenue growth, but that is obviously not their base case here, they're fans.
JULIE HYMAN: Yeah, and most of the people on the street, most of the analysts who cover the stock are fans too.
