4 Pinterest Analysts On Q3 Earnings: Why One Says Results Are 'Stronger Than Expected'

Zinger Key Points
  • Pinterest’s results were “a constructive start” for the company’s new CEO, an analyst says.
  • "Management demonstrated early execution towards key initiatives” another analyst states.

Pinterest Inc PINS reported on Thursday its third-quarter results, with almost flat monthly active users (MAUs) of 445 million. The company’s revenue grew 8% year-over-year to $685 million.

Rosenblatt Securities On Pinterest

Analyst Barton Crockett maintained a Neutral rating on the stock.

Pinterest's results “topped low expectations, and marked a constructive start for new CEO Bill Ready,” Crockett said in a note. “MAUs grew 11m in the quarter to 445M, the first double-digit rise since the pandemic,” he added.

“Trends seem poised for improvement, with a headwind from a change to Google's search algorithm being lapped in Nov. Apps, which drive monetization, had rising usage,” the analyst further mentioned.

Benchmark On Pinterest

Analyst Mark Zgutowicz reiterated a Hold rating.

“We appreciated Bill Ready’s articulation last night of a renewed focus to engage its high-intent users in more shoppable actions,” Zgutowicz wrote in a note. “We were also pleased to hear of urgency in moving Pinterest’s ad tech stack up the competitive ladder, particularly with measurement utility that has long been lacking,” he added.

Check out other analyst stock ratings.

KeyBanc Capital Markets On Pinterest

Analyst Brad Erickson reiterated a Sector Perform rating while raising the price target from $23 to $24.

Pinterest’s third-quarter results were “solid,” Erickson said. “MAU's/engagement are going in the right direction, the company's providing strong disclosure on new commerce-related product development, optionality's increasing and management is off to a great start with investors,” he added.

Morgan Stanley On Pinterest

Analyst Brian Nowak maintained an Equal-Weight rating and a price target of $18.

The company results were stronger than expected and “management demonstrated early execution towards key initiatives,” Nowak stated in a note. “The turnaround will take time though, and a weaker 4Q guide combined with (potentially) rising consumer weakness into '23 create uncertainty and cause us to lower ests,” he added.

PINS Price Action: Shares of Pinterest had risen by 10.82% to $24.27 at the time of publication Friday.

Read More: Pinterest Only Social Media Asset Likely To See Double-Digit Revenue Growth, Margin Expansion In 2023, Says Analyst; How Minnow Outdid Bigger Rivals In Q3

Photo: Shutterstock

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Posted In: Analyst ColorEarningsNewsPrice TargetReiterationAnalyst RatingsMoversTrading IdeasBarton CrockettBenchmarkBrad EricksonBrian NowakKeyBanc Capital MarketsMark ZgutowiczMorgan StanleyRosenblatt Securities
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