Pinterest Stock Rallies After JPMorgan Upgrade, But Retail’s Defensive As Bearish Vibes Persist
Synopsis
JPMorgan upgraded the stock, citing strong execution, improved monetization, and ad growth, and sees upside potential and a favorable risk/reward setup.
Shares of Pinterest Inc. (PINS) traded over 4.2% higher in Tuesday’s premarket after JPMorgan upgraded the stock to ‘Overweight’ from ‘Neutral’ and raised its price target to $40 from $35.
As per TheFly, the upgrade comes as Pinterest stock, despite outperforming broadly in 2025, still trades 18% below its February peak.
JPMorgan cited improved strategic execution and growth momentum as core reasons for the upgrade.
It sees Pinterest making headway on user growth, engagement depth, monetization efficiency, and profitability goals set initially during its 2023 investor day.
According to JPMorgan, Pinterest’s ability to scale its advertising capabilities through a "full funnel" approach, from discovery to conversion, has begun attracting a wider base of advertisers.
Automation tools and targeting improvements are also playing a significant role in growing ad revenue and unlocking new demand tiers.
The brokerage noted that Pinterest remains underappreciated by the broader market, offering an appealing entry point for investors.
With the company executing effectively and estimates poised for potential upward revisions, JPMorgan believes the stock presents a compelling risk/reward trade-off in its current position.
For the first quarter of FY25 (Q1), Pinterest’s revenue jumped 16% year-on-year (YoY) to $855 million, beating the analyst consensus estimate of $846.1 million, as per Finchat data.
Global monthly active users (MAU) increased 10% YoY to 570 million. However, adjusted earnings per share (EPS) of $0.23 missed the consensus estimate of $0.26.
On Stocktwits, retail sentiment around Pinterest remained in ‘bearish’ territory.
Pinterest stock has added 10% so far in 2025 and lost over 22% in the past 12 months.
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