Oppenheimer Initiates Coverage on Pinterest with Outperform Rating, Sets $45 Price Target on Strong Ad Growth

Pinterest (NYSE:PINS) shares rose more than 3% intra-day today after Oppenheimer analysts initiated coverage on the stock with an Outperform rating and a price target of $45.

The analysts highlighted Pinterest’s position as a global discovery platform with high-intent users searching for products and inspiration, making it well-suited for direct response advertising. The analysts noted that relevant ads enhance the user experience, similar to magazines, which boosts advertiser return on investment (ROI). Pinterest is currently the fastest-growing digital ad platform outside of Meta, with third-party integrations from Amazon and Google improving auction density and pricing.

The analysts’ outlook is supported by a proprietary consumer survey, advertiser insights, and a detailed analysis of user metrics and market opportunities. While Pinterest has a smaller daily active user (DAU) base compared to other social media platforms, the analysts see potential for increased engagement. The stock’s valuation is also considered attractive, trading at 12x EBITDA. The price target assumes 17x 2026 EBITDA, which reflects a 4% premium to peers, driven by the platform's faster growth rate of 42% from 2023 to 2026.