Pinterest Upgraded to Buy Following Q2 Beat
<p>Rosenblatt raised its rating on <a href='https://financialmodelingprep.com/financial-summary/PINS'>Pinterest (NYSE: PINS)</a> from Neutral to Buy and set a new price target of $35.00, up from the previous target of $27.00 following the Q2 beat yesterday.</p>
<p>According to the analysts, Pinterest is actively focusing on improving its advertising tools and implementing better AI technologies, following a similar trend seen among its peers. However, unlike Snap, which faced challenges related to AI in the second quarter of 2023, Pinterest is experiencing a substantial increase in margins. </p>
<p>The company's non-GAAP cost of sales has declined for three consecutive quarters, accounting for 23.2% of sales in Q2/23, which is down 120 basis points year-over-year. Moreover, operating expenses are expected to rise only by low single digits percentage in Q3/23 compared to the previous year, and EBITDA margins are now projected to increase by 400 basis points for the entire year, as opposed to the previously estimated 200 basis points. </p>

NYSE:, PINS