Wells Fargo Assumes Pinterest Inc (PINS) at Overweight

Wells Fargo analyst Alec Brondolo assumes coverage on Pinterest Inc (NYSE: PINS) with a Overweight rating and a price target of $25.00.

The analyst comments "Repurchasing $2.0B of stock (~15% of shares out) in 1H:26 is a good first step, but we see even more room to get aggressive on capital return. PINS issued $1.0B of converts (1.75% annual interest) to activist Elliott Management to fund the $2.0B buyback, but will still be in a net cash position. We believe PINS has an attractive credit profile (LDD rev growth, 30% margins & minimal CAPEX) & the stock remains cheap at <6x 2027 EBITDA, see oppty to increase leverage further to fund add'l buybacks. Transitioning lead coverage to Alec Brondolo from Ken Gawrelski. Reducing 2026 revenue by 1% to reflect mixed checks & expectations of a moderate macro impact from the Iran War. As a result, our 2026 EBITDA falls by 1% as well. Our PT falls to $25 ($27 prior), implying 8x (10x prior) our 2027 EBITDA estimate of $1,574M ($1,589M prior)."

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 $18.25 yesterday.

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