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Research Alert: CFRA Maintains Buy Opinion On Shares Of Pinterest

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our target to $28 from $19, on a higher P/E of 13.4x our 2027 EPS view, below peers and historical multiples to reflect uncertainties around AI competitive dynamics. After it posted better-than-expected Q1 results and a strong Q2 guidance, we raise our 2026 EPS view to $1.87 from $1.75 and 2027's to $2.09 from $1.90. We see improving international monetization as the primary growth driver near term (Rest of World and Europe saw 59% and 27% revenue growth in Q1) while the company's AI investments are delivering greater results for advertisers. PINS's recommendation engine model improved search fulfillment by 180 basis points in Q1 while Performance+ campaigns now account for 30% of lower-funnel revenue with adopters growing spend at twice the rate of non-adopters. The now completed tvScientific deal also injects a new growth opportunity into the faster growing Connected TV market. We believe PINS's low teens P/E undervalues these growth initiatives and a more aggressive cash return to investors.

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