BofA Securities reaffirmed a Buy recommendation on Pinterest Inc (NYSE: PINS) and kept a $39.00 price target as investors await the company's fourth-quarter results. The firm noted that analyst price targets range from $21 to $45 and that the consensus recommendation sits at 1.62, according to pro-level analyst data.
Revenue outlook and near-term estimates
BofA expects Pinterest to report fourth-quarter revenue of $1,332 million, a figure marginally higher than the Street consensus of $1,330 million. The bank projects year-over-year revenue growth for the quarter of 15%, reflecting a deceleration of 2 percentage points quarter-over-quarter on what it describes as stable annual comparisons.
Looking into the first quarter of 2026, BofA models revenue of $986 million, closely aligned with the consensus estimate of $983 million. The bank expects growth to hold steady quarter-over-quarter at 15%, aided by comparisons it characterizes as 2 percentage points easier.
Historical growth and valuation context
Pinterest has delivered solid top-line growth in recent periods, with revenue up 16.79% over the last twelve months and a five-year compound annual growth rate of 26%. BofA points to an attractive valuation framework as part of its positive stance - the firm values Pinterest at 8x 2027 EBITDA, which it contrasts with a historical trading range of 8x to 30x and a post-2022 average of 17x.
Current headline multiples reported by the bank include a price-to-earnings ratio of 8.15 and an enterprise value-to-EBITDA multiple of 43.58. The stock is trading near its 52-week low after a 31.68% decline over the past six months.
Drivers supporting the Buy view
- BofA cites constructive user engagement metrics for Pinterest as a primary operational underpinning for optimism.
- The bank expects U.S. advertising year-over-year comps to ease in 2026, which could support sequential ad revenue acceleration.
- BofA also highlights the potential for Pinterest to insource more advertising inventory previously delivered through third-party partners such as Google as a route to improving monetization.
Corporate changes and analyst reactions
Separately, Pinterest has announced a global restructuring plan that will include a workforce reduction of less than 15% and steps to reduce its office footprint. The company said it anticipates pre-tax restructuring charges between $35 million and $45 million, primarily cash costs. Management described the reallocation of resources toward roles focused on artificial intelligence and the prioritization of AI-powered products and capabilities as central to the restructure.
In the wake of these changes, Stifel maintained a Buy rating on the stock. Jefferies has retained a Hold rating with a $28 price target, stating that revenue expectations for Q4 and Q1 appear reasonable. Jefferies additionally noted that the postponement of furniture tariff rate hikes to January 2027 could provide a modest tailwind to first-quarter results.
Risks highlighted by BofA
The bank flagged the potential for tariff-related headwinds to intensify in the first quarter, which it says could trigger a more structural pullback in advertising spending across certain retail categories. BofA’s positive outlook is balanced against that risk, as well as the near-term costs associated with the restructuring effort.
Where things stand
Overall, BofA’s stance combines modest near-term revenue beats, an attractive forward valuation on 2027 EBITDA, and several operational levers for upside, while acknowledging tariff and restructuring risks that could pressure ad demand or earnings. A comprehensive Pro Research Report is available that includes additional analysis and 11 supplemental ProTips for investors seeking deeper detail.
Data points and estimates cited in this report are drawn from analyst models and corporate disclosures referenced above.