Jefferies has maintained its Hold recommendation on Pinterest Inc (NYSE: PINS), preserving a $28.00 price target as investors await the company’s upcoming earnings release on February 12. Pinterest shares are trading around $25.90, below Jefferies’ target but inside the broader analyst band of $21 to $45.
In its latest view, Jefferies judged Pinterest’s top-line expectations for the fourth quarter and the first quarter to be reasonable when adjusted for historical seasonal patterns. The firm noted the wider advertising market appeared robust over the holiday period, which supports near-term revenue assumptions. Jefferies also flagged a regulatory development that could help results modestly - the postponement of planned furniture tariff increases from January 2026 to January 2027 - which it believes could provide some upside to first-quarter outcomes.
InvestingPro data referenced by Jefferies shows Pinterest delivered 16.79% revenue growth over the last twelve months. Despite that growth, the research house expressed concern about Pinterest’s margin trajectory. Specifically, Jefferies warned fiscal 2026 EBITDA margin expectations could be revised lower, observing that cost of goods sold is tracking more closely with revenue growth for 2026 and that the company’s recent guidance implies only a modest year-over-year improvement in EBITDA.
Valuation considerations factored into Jefferies’ caution. InvestingPro analysis points to a high enterprise-value-to-EBITDA multiple of 49.2 for Pinterest, a level that supports Jefferies’ reservation about the stock even though Pinterest’s broader financial health earned a "GREAT" rating from InvestingPro.
Jefferies also cataloged several persistent operational headwinds. The firm highlighted six consecutive quarters of deceleration in revenues for the U.S. and Canada market, a scarcity of meaningful new product catalysts, and what it described as an emerging "AI-loser narrative." Its channel checks reportedly show no material improvement in Pinterest’s performance ads business, and Jefferies flagged the potential for OpenAI’s advertising efforts to capture some experimental budget share.
While Jefferies acknowledged that certain external developments could help Pinterest - for example, a favorable Supreme Court decision on tariffs or policy moves tied to housing affordability under a Trump administration - it classified those scenarios as extraneous, non-idiosyncratic drivers rather than fundamental, company-specific catalysts. Given the combination of factors, Jefferies maintained a Neutral view on the shares.
The stock has faced near-term selling pressure, with Pinterest’s share price down almost 32% over the past six months. At the same time, InvestingPro’s Fair Value assessment indicates the company may be undervalued at current market levels. Investors interested in more granular analysis are directed to Pinterest’s Pro Research Report through InvestingPro, which covers more than 1,400 U.S. equities.
Recent strategic and market developments have provided mixed signals for the business. Pinterest announced the acquisition of tvScientific, a connected-TV performance advertising platform aimed at extending the company’s AI-powered ad capabilities from mobile devices to television screens. The stated purpose of the acquisition is to improve how advertisers measure the impact of TV advertising on their campaigns.
On the analyst front, BMO Capital reiterated an Outperform rating on Pinterest with a $35.00 price target, pointing to shopping integrations and the tvScientific acquisition as positives. Conversely, Wedbush downgraded Pinterest from Outperform to Neutral, citing growth concerns after mixed third-quarter results and revenue guidance that fell short of expectations for the upcoming quarter.
Outside commentary has also touched the company. The Information has speculated that OpenAI could acquire Pinterest by 2026 to strengthen its online shopping and advertising offerings. Separately, the U.S. operations of TikTok are expected to be sold to a consortium of mostly American investors led by Oracle and Silver Lake, with that deal reported to be nearing completion. These transactions and strategic moves underscore active repositioning and competitive shifts within the digital advertising and online commerce landscape.
Taken together, Jefferies’ reiteration of a Hold rating reflects a balance: reasonable short-term revenue visibility driven by seasonal factors and a resilient ad market, tempered by margin risk, valuation concerns and persistent product and growth uncertainties in core markets.