Pinterest Inc (PINS) PT Lowered to $25 at Guggenheim

Guggenheim analyst Michael Morris lowered the price target on Pinterest Inc (NYSE: PINS) to $25.00 (from $38.00) while maintaining a Buy rating.

The analyst commented: "4Q revenue and Adjusted EBITDA were below our/Street expectations, with management citing tariff-related headwinds and higher mix of large retail advertisers relative to peers as reason for the underperformance. 1Q guidance was similarly light (below our/Street/buyside estimates) as tariff impact is expected to persist. Leadership acknowledged underperformance and noted several key initiatives to return to historical levels of mid-to-high teens top-line growth. The predominant focus is on broadening revenue mix with SMB advertisers and mid-market enterprises (SMB revenue growth rate nearly doubled in 2025), given lower penetration relative to other platforms. Additional areas for growth include further international revenue acceleration, agency partnerships (particularly UCAN), and continued contribution from third-party demand sources. Bottom line outlook for ~flat margin expansion in 2026 is impacted by investments across AI and sales transformation efforts, though management reiterated goal to achieve 30-34% Adjusted EBITDA margins over the medium term. 2026 guide does not include TV Scientific acquisition (expected to close in 1H26) which would cause ~100bps drag to full-year margin outlook. Usage growth remains a bright spot (record MAUs in 4Q) with top-line reacceleration an execution story, in our view (expecting impact of first Chief Business Officer to ramp over next several quarters). We maintain our BUY rating, though lower price target to $25 (vs. $38 prior) as revenue headwinds and increased investments lower our near-term estimates."

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