Guggenheim Upgrades Pinterest to Buy, Raises Price Target to $40

Pinterest's stock surged by approximately 5% following a rating upgrade by Guggenheim analyst Michael Morris, who raised the price target from $39 to $40 and designated the stock as a 'Buy.' Morris highlighted that the recent price pullback presents an attractive investment opportunity, citing Pinterest's strong growth potential in user engagement and monetization, especially with the anticipated improvements from AI technology in advertising. The stock's rise also coincided with a broader market rebound, as investors reacted positively to news regarding the U.S. administration's plans for targeted tariffs, suggesting less severe economic impacts. Despite a recent decline over the past nine months, Pinterest has garnered support at key price levels and is experiencing increased traffic and engagement, particularly among younger users. Analysts generally maintain a bullish outlook on the stock, with expectations of significant revenue growth driven by heightened user activity and effective advertising strategies. Overall, the favorable sentiment from analysts and the potential for AI-driven enhancements are key factors contributing to the stock's upward momentum.