Pinterest Inc. (NYSE:PINS) is one of the best communication services stocks according to Hedge Funds.
Shweta Khajuria from Wolfe Research reiterated her bullish views on Pinterest Inc. (NYSE:PINS), assigning a Buy rating on January 5. Despite a downward revision in the target price from $36 to $33, Khajuria still expects a 20% upside potential.
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The analyst expects a continued rally in Internet stocks following 3 years of outperformance. She expects a favorable sentiment driven by macroeconomic growth, AI-linked developments, and larger spending on products.
BMO Capital analyst Brian Pitz also reaffirmed his outperform rating on Pinterest Inc. (NYSE:PINS) on December 16. Pitz gave a Buy call and estimated a $35.00 price target, which leads to an upside of over 27%.
Pitz shed light on the company’s recent strategic acquisition of tvScientific, which allows advertisers to connect with high-intent customers through connected TV (CTV) inventory. Moreover, this move will make advertising more effective by sending high-intent signals to advertisers through the company’s platform. Pitz also acknowledged a healthy balance sheet for Pinterest Inc. (NYSE:PINS), carrying more cash than debt.
Pinterest Inc. (NYSE:PINS) is an online visual search and discovery platform that operates globally. It enables creativity by allowing users to share and search for a wide range of ideas covering different topics. This could include fitness, style, recipes, art, and more. It also allows users to engage with advertisers, which is a key revenue source for the business.
While we acknowledge the potential of PINS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
