Pinterest (PINS): Valuation in Focus as Analysts Boost Price Targets Ahead of Earnings

Several Wall Street firms have boosted their outlook on Pinterest (PINS) in the days leading up to the company's next earnings report. They are highlighting growing momentum around its revenue and profitability prospects. Investors are paying close attention to upbeat forecasts and recent business trends.

See our latest analysis for Pinterest.

After a tough stretch that saw Pinterest’s share price drop nearly 14% over the past month, the stock has begun to show signs of resilience. Most recently it edged ahead of the broader market, despite a year-to-date dip of less than 1%. While short-term volatility has been a headwind, Pinterest’s three-year total shareholder return of 42% stands out and underlines the longer-term momentum now building as investors refocus on growth and profitability signals.

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With analysts raising their targets and forecasts pointing to stronger growth ahead, the key question now is whether Pinterest’s current valuation reflects all this optimism, or if the recent pullback could present a genuine buying opportunity.

Most Popular Narrative: 28.7% Undervalued

Pinterest’s last close of $30.40 sits well below the narrative’s estimated fair value of $42.63, suggesting there’s significant upside potential if the outlined growth takes hold. Driven by product innovation and expanding monetization opportunities, the narrative frames an ambitious growth scenario that could transform Pinterest’s valuation landscape over the coming years.

This could result in EPS rising to $2.00 to $3.10, depending on execution and market conditions. Valuation multiples are expected to normalize in the range of 25 to 35 times P/E by 2029, depending on growth quality and market sentiment. Based on these assumptions, Pinterest’s stock could reach:

Read the complete narrative.

Discover the “secret sauce” behind this bullish outlook. How do advertising innovation, margins, and global opportunities combine to forecast Pinterest’s potential surge? You’ll be surprised by the ambitious projections and the financial levers at play in this narrative. Don’t miss the strategy fueling the fair value call.

Result: Fair Value of $42.63 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, unexpected shifts in digital ad demand or execution missteps with new products could quickly stall Pinterest’s progress and dampen investor optimism.

Find out about the key risks to this Pinterest narrative.

Build Your Own Pinterest Narrative

If you want to take a closer look at the numbers or think the story deserves a different angle, you can craft your own narrative in just a few minutes with Do it your way.

A great starting point for your Pinterest research is our analysis highlighting 5 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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