TD Cowen raises Pinterest stock price target to $44 on strong Q2 results

Pinterest (PINS) reported strong Q2 2025 revenue of $998 million, up 17% year-over-year and exceeding consensus by 2%, coupled with an 8% EBITDA beat, driven by robust MAU growth and international strength, despite an EPS miss. This performance, along with Q3 revenue guidance 1% above consensus, led to an 11% after-hours stock surge and multiple analyst price target increases, signaling continued market confidence in the platform's growth trajectory.

Analysis

Pinterest (PINS) delivered a mixed but largely positive second-quarter 2025 financial report, characterized by strong top-line momentum juxtaposed with a bottom-line miss. The company reported revenue of $998 million, a 17% year-over-year increase that surpassed consensus estimates by 2%, while EBITDA also outperformed expectations by 8%. This growth was attributed to robust monthly active user (MAU) expansion and notable strength in its Retail and Financial Services verticals, particularly in Europe and other international markets. However, this performance was partially offset by an earnings per share of $0.33, which fell short of the $0.35 forecast. Looking ahead, Pinterest's guidance for the third quarter was modestly optimistic on revenue, projecting 1% above consensus at the midpoint, but its EBITDA forecast merely bracketed analyst expectations, a point of concern for some analysts. The market reacted favorably to the headline results, with the stock climbing 11% in after-hours trading, a move supported by a wave of price target increases from firms like BofA, Stifel, and Rosenblatt, who maintained Buy ratings. A more cautious stance was taken by Piper Sandler, which cited weaker guidance in its decision to maintain a Neutral rating, highlighting the nuanced investor sentiment surrounding the company's profitability path.

Key Decisions for Investors

• Investors with a bullish thesis on digital advertising could see the 17% revenue growth, strong MAU trends, and positive market reaction as validation to hold or augment positions, focusing on the continued top-line momentum.
• It is prudent to closely monitor the company's expense management and margin trends, as the EPS miss and in-line EBITDA guidance suggest converting strong revenue growth into bottom-line profitability remains a key challenge.
• Given the multiple price target upgrades against a few cautious analyst notes and a reported P/E of 13.9x, investors should weigh the strong growth signals against potential valuation concerns and the mixed outlook on profitability.
• Key performance indicators to watch in coming quarters are the sustainability of international MAU growth and the progress of monetization efforts in overseas markets, which analysts have flagged as a primary driver of recent strength.