Piper Sandler upgraded the social network, saying that it has “several tailwinds” going into 2023, regardless of the advertising market. As a result, shares of Pinterest (NYSE:PINS) rose by about 12% in Tuesday morning trading.
Pinterest (NYSE:PINS) analyst Thomas Champion raised his price target from $25 to $30 and changed his rating from neutral to overweight, adding that the company is anticipated to gain from an improved advertising offering, growing market share, better trends for monthly active users, and increasing profits.
In a note to clients, Champion stated, “We like the new leadership and investor activism, and we see a repurchase coming.” “The lows are most likely already here.”
In-depth, Champion stated that because it is the only advertiser to experience yearly gains in return on investment, targeting, and measurement, Pinterest (NYSE:PINS) is anticipated to experience a rise in ad share in 2023. As Pinterest (PINS) had rising trends in CPM in November, it may also profit from any advertising fallout at Twitter (TWTR).
Pinterest Stock Outlook
The analyst also pointed out that Pinterest (NYSE:PINS) finally added 3M MAUs in the U.S. and Canada in the third quarter, following five quarters of monthly active user decreases, with the trend probably continuing in the fourth. The demographic picture is getting brighter as usage increased to a record-high 37% in the fall of 2022, according to a survey of teenagers by Piper Sandler.
Champion also said that the recent layoffs at Pinterest (NYSE:PINS) mean that the company’s new CEO, Bill Ready, is likely to make more money.
Champion thinks that a stock buyback is likely because Pinterest (PINS) had $2.7 billion in cash at the end of the third quarter and is “sufficiently profitable and over-capitalized” with an expected $500 million in free cash flow in 2023. An activist hedge fund, Elliott Investment Management, and Pinterest (PINS) signed a long-term partnership agreement earlier this month.
Pins Stock Upgraded By Goldman Sachs Noting A “More Favourable Risk-Reward Skew”
Featured Image – Pexels © Brett Jordan
Author Jowi Kwasu 
