UPDATE: Morgan Stanley Downgrades Pinterest Inc (PINS) to Equalweight, 'We have been wrong about PINS'

Morgan Stanley analyst Brian Nowak downgraded Pinterest Inc (NYSE: PINS) from Overweight to Equalweight with a price target of $30.00 (from $53.00).

The analyst comments "Pace of Innovation Slower than Expected as Advertising, User and Engagement Trends Remain Challenging... We have been wrong about PINS’ ability to continue to rapidly innovate and improve its user offerings (to drive retention, growth and engagement) and ad offerings (to capitalize on its social shopping opportunity detailed in At the Crossroads; Initiate at Equal-weight, $25PT). This has led to slower than expected ad growth (past 3consecutive forward quarter ad revenue guidance came in below our expectations) and US monthly users have declined by 12mn (~12%) since 1Q:21…with US users reaching the lowest level since 2Q:19. In addition, we continue to see US time spent per user decline 1%-19% Y/Y over the past 4 quarters. As such, we estimate total US user minutes have fallen to 2017 levels. This, to us, is troubling given the importance of engagement to driving monetization."

For an analyst ratings summary and ratings history on Pinterest Inc click here. For more ratings news on Pinterest Inc click here.

Shares of Pinterest Inc closed at $25.49 yesterday.

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