Pinterest has taken a fall over the past few years, one analyst thinks shares are due for a major move higher. TD Cowen called Pinterest its “best Smidcap Idea for 2026” in a note to clients on Monday. Analyst John Blackledge gave the social media platform a price target of $38, implying a massive 83% upside, and the highest price target compared to other firms tracking the stock, based on LSEG data. PINS YTD line Pinterest is down 25% this year “Going forward, we expect Pinterest to be a share gainer in the global digital ad market, helped by favorable user and engagement trends alongside rising adoption of the company’s Performance+ initiative and a longer-term broadening of the advertiser client base.” Blackledge wrote in Monday’s note. The stock, however, has struggled over the years. Since peaking in 2021, Pinterest has fallen nearly 75%. In the past 12 months, it has lost 41%. But shares have managed to make up some of ground. They are up more than 13% this quarter and have advanced more than 3% over the past month — outpacing the S & P 500’s 3% decline. A bullish case to buy Blackledge cited four reasons he believes that Pinterest is well-positioned: Performance+ adoption rate: Performance+ — Pinterest’s AI-driven suite for ads — is a massive driver for advertiser growth, with management stating 30% of lower funnel revenue is going through Performance+ Strong user growth: Monthly active users rose 11% year over year in Q1 to 631 million. Better ad measurements: Pinterest continues to offer better measurements and optimization improvements for advertisers, allowing advertisers to better measure outcomes and tailor campaigns. Acquisition of tvScientific: Pinterest’s acquisition of tvScientific allows advertisers to access connected TV streaming audiences, diversifying revenue channels and driving long-term revenue growth. Blackledge reiterated that Pinterest is a unique spot for consumers with its visual search engine, and consumers are likely to continue to engage with the platform. Other analysts also seem to agree that Pinterest has the potential to grow. Oppenheimer analyst Jason Helfstein said that while factors, such as tariffs, inflation and lower consumer spending are impacting Pinterest’s biggest advertisers and driving down its revenue, he noted that those factors are temporary and expects those factors to clear up soon. Per LSEG, a total of 19 analysts recommend buying the stock. Among them are Guggenheim and Mizuho as well. However, another 20 rate the stock as a hold, with some noting there are still many hurdles for the company to clear before they’re comfortable recommending it to clients. A bearish reason to hold Rothschild analyst Joseph Barker has a neutral rating on the stock, citing a shift in the digital advertising landscape. Barker noted that the rise of AI has supercharged large platforms like Instagram, leaving smaller platforms struggling to compete for direct-response ad dollars. While other platforms looked at diversifying their revenue through subscriptions, Pinterest remains entirely dependent on ad revenue. “We believe a change of direction is required for the advertising business, as well as more dramatic action in relation to costs. Combined with structural concerns regarding Pinterest having the least potential for revenue diversification of the three second-tier ad platforms, we therefore downgrade to Neutral,” Barker said in a report in April. Barker noted that while other social media companies like Reddit and Snapchat are also facing similar issues, Pinterest stands out as the most vulnerable due to its lack of monetizable features outside of traditional advertising. Still, TD’s Blackledge thinks Pinterest is “well positioned as a unique destination for visual search, discovery, & inspiration, with significant potential monetization upside and a growing, highly engaged user base.”
Pinterest has taken a beating in recent years. This analyst thinks it’s time to buy
