Pinterest Stock (PINS) Gets Morgan Stanley Upgrade, Signals Bullish Outlook

Pinterest's stock price (NASDAQ: PINS) is generating significant buzz on Wall Street, up 5% in the pre-market with a recent upgrade from Morgan Stanley projecting substantial gains for stock. The investment bank moved its rating to Overweight from Equal Weight, setting a new price target of $45, a considerable leap from the previous $37. This vote of confidence hinges on the expectation that Pinterest's strategic investments will bear fruit in the latter half of 2025, driving improvements in monetization and amplifying its earnings power.

Morgan Stanley's optimism is rooted in constructive advertising trends and the observed improvements in Pinterest's ad efficiency. Their analysis suggests that Pinterest is becoming a more effective platform for performance-driven advertising, a key factor in attracting and retaining ad spend. This sentiment echoes broader positive analyst perspectives, with Monness analysts having previously upgraded Pinterest to a Buy rating in January 2025, citing the company's strategic initiatives and improving fundamentals, particularly the expansion of reseller partnerships that enhanced the platform's actionability for major advertisers.

Upcoming earnings are also a focal point for investors. Pinterest is scheduled to report its Q2 2025 earnings on August 7, with an estimated EPS of $0.35 per share. While the previous quarter (Q1 2025) saw a slight EPS miss, the company exceeded revenue expectations, generating $854.99 million against an anticipated $846.48 million. The Q3 2025 revenue estimate stands at $974.65 million, indicating analysts' expectations for continued growth.

The consensus 12-month price target of $40.51, is more conservative than Morgan Stanley's $45 target, yet continues to point to bullish sentiment building.