BMO, Roth Capital Lift Pinterest Price Targets on AI Ad Strength
Pinterest shares gain analyst support as AI-driven advertising improvements offset tariff headwinds, with BMO Capital raising its target to $30 and Roth Capital to $25.
Pinterest (NYSE: PINS) attracted fresh analyst attention on 5 May as two firms raised their price targets, pointing to the social media platform’s ability to leverage artificial intelligence for advertising growth. BMO Capital increased its recommendation to $30 from $28, reiterating an Outperform rating, while Roth Capital lifted its price goal to $25 from $18, maintaining a Neutral rating.
Both institutions highlighted Pinterest’s first-quarter financial results, noting that revenue and adjusted EBITDA figures exceeded consensus estimates. The positive earnings performance provided a foundation for the upward revisions, with analysts viewing the quarter as a strong indicator of the company’s operational momentum.
A key factor in the upgraded outlook was the performance of Pinterest’s AI-driven advertising platform. BMO Capital noted that while tariff-related pressures persisted among some of the company’s largest retail customers during the quarter, improvements in the AI ad tools helped offset these headwinds later in the period.
Roth Capital analyst Rohit Kulkarni described the quarter as a “beat-and-raise” event, citing revenue that topped expectations and second-quarter guidance that came in above forecasts. The firm suggested that Pinterest’s investments in AI are beginning to generate measurable return on investment for advertisers, potentially supporting faster revenue growth.
Pinterest, Inc. is a visual search and discovery platform accessible via mobile app and website, allowing users to refine interests and explore new ideas. The company has demonstrated a 5-year average revenue growth rate of 25.2%, a metric that has contributed to its inclusion in various long-term investment lists by financial publishers.
Despite the positive analyst sentiment, Roth Capital maintained its Neutral rating, reflecting a cautious stance on the stock’s valuation relative to broader market conditions. The divergence in ratings between BMO Capital and Roth Capital underscores the differing views on the sustainability of Pinterest’s growth trajectory amid macroeconomic uncertainties.
