Pinterest Inc. (NYSE: PINS) remains a top pick for UBS, which has reiterated its Buy rating and a $50 price target in a fresh research note released Monday. The stock, which closed at $34.92, has dipped nearly 10% in the past week, but analysts at UBS remain confident in its long-term potential, citing strong fundamentals and growth opportunities.
Mixed Regional Performance but Strong Fundamentals
UBS highlighted a split in Pinterest’s regional performance. While the Asia-Pacific (APAC) market faced headwinds due to slowing advertiser spending in Q2 2025, Europe and the Rest of the World (ROW) showed accelerated revenue growth.
Despite the APAC slowdown, Pinterest boasts a “GREAT” financial health score according to InvestingPro analysis. The company reported 17% revenue growth over the last 12 months and maintains a strong balance sheet with more cash than debt and a current ratio of 8.76, positioning it well for future expansion.
Analyst Insights and Adjusted Forecasts
UBS analyst Stephen Ju had initially expected Pinterest’s Q3 2025 guidance to reflect faster revenue growth as the company moved past prior headwinds in the food and beverage category. However, the recent slowdown in APAC advertiser spending has delayed that acceleration.
Even so, UBS has increased its revenue estimates for 2026 and 2027 by about 1% each, and raised its EBITDA estimates by 1% and 2% for those years, citing natural operating leverage within the business. Positive developments from Q2 include Pinterest’s first-party-driven export of lower-funnel products in Europe and the onboarding of new third-party partners to strengthen growth in the ROW markets.
Strong Q2 Results Drive Analyst Optimism
Pinterest’s second-quarter earnings report was another bright spot for investors:
- Revenue growth: +16.9% year-over-year, beating consensus by 2%
- EBITDA: Surpassed expectations by approximately 8%
Following the results, several major firms adjusted their targets:
- TD Cowen: Raised price target to $44.00, Buy rating maintained
- JPMorgan: Increased price target to $44.00, kept Overweight rating
- CFRA: Adjusted price target to $43.00, maintained Strong Buy rating, citing AI capabilities
- Benchmark: Reaffirmed Buy with $48.00 price target, despite concerns over ARPU in U.S. and Canada
- Raymond James: Maintained Market Perform rating, citing advances in advertising tech and partnerships with Amazon (NASDAQ: AMZN) and Google (NASDAQ: GOOGL)
Growth Drivers and Potential Risks
Analysts remain optimistic about Pinterest’s international expansion and its ability to monetize through advanced advertising technology, especially as partnerships with tech giants help broaden its advertiser base. However, slower growth in APAC remains a near-term challenge.
The average revenue per user (ARPU) is seeing strong growth in Europe and ROW, but U.S. and Canada ARPU trends have been more modest. Continued product innovation, AI integration, and diversification of advertiser categories could help narrow that gap over time.
Valuation and Investor Perspective
Despite the recent price drop, UBS and other bullish analysts see Pinterest as undervalued relative to its growth potential. The company’s solid financial position, expanding international reach, and improving monetization tools contribute to a positive long-term outlook.
However, not all models agree — according to InvestingPro’s AI-powered stock analysis, PINS did not rank among the top undervalued opportunities compared to thousands of other stocks. This suggests that while Pinterest may offer growth potential, it may not be the absolute best bargain in the market right now.
Bottom Line
UBS’s reaffirmed Buy rating and $50 target indicate confidence in Pinterest’s growth trajectory, even as the company navigates regional advertising challenges. With solid financial health, strong Q2 results, and growing international revenue streams, Pinterest remains on analysts’ watchlists as a tech stock to watch in 2025.
