Wolfe Research upgraded Pinterest (NYSE:PINS) from Peer Perform to Outperform and set a new price target of $40, pointing to improving fundamentals, product innovation, and an attractive valuation relative to peers.

The firm highlighted several drivers behind its bullish stance: a less pronounced macro headwind, continued product-led growth—particularly from its Performance+ ad product, which is contributing 2–3 percentage points of growth—emerging third-party (3P) monetization potential, and a valuation that remains compelling for a mid-teens growth profile.

Wolfe noted that Pinterest’s ad performance cycle is yielding better advertiser engagement and helping the platform gain market share, with Pinterest growing in the mid-teens percentage range while the broader digital ad market expands in the low double digits.

At 13.5x projected 2026 EBITDA, Pinterest trades at a significant discount to peers like Snap and The Trade Desk, which average around 24.5x, despite a similar growth trajectory. Year-to-date, Pinterest has gained 13%, outperforming Snap (-16%) and The Trade Desk (-33%), and in line with Meta (+13%).

The upgrade reflects confidence in Pinterest’s ability to sustain above-market growth and benefit from favorable relative positioning in the digital advertising landscape.