Pinterest (NYSE: PINS) shares were rising in the premarket on October 6, as Goldman Sachs (NYSE: GS) analyst Eric Sheridan upgraded the company, indicating that there is now a positive risk-reward correlation at the current price levels.
Sheridan raised the rating from neutral to buy and increased the target price from $24 to $31, pointing to rising engagement trends and potential for revenue increase in 2023 and 2024.
“Our recent work has given us increased confidence in Pinterest’s ability to grow monetization and capture a greater share of ad budgets as management executes against its shopping/commerce opportunity and, over the long-term, we see Pinterest as positively levered to a number of long-term secular growth themes (engagement & ad spend shifting online, social commerce, creator economy, etc.).”
At the time of writing, in premarket, the shares popped 5% on the positive news as investors rushed into the stock. At market open, shares surged another 1% to a total of 6% gain at the time of writing on October 6. PINS premarket data. Source: Nasdaq PINS chart and analysis
The short-term trend is positive, while the long-term trend is neutral, as PINS outperformed 80% of 80 stocks in the Interactive Media & Services industry. Over the past month, shares have traded from $22.13 to $25.91, bouncing between the 200-day and 50-day moving averages. Related IBM to invest $20 billion in the Hudson Valley over 10 years – heres what to know Next Lucid (LCID) levels to watch as stock caught in downtrend limbo Crypto expert indicates were in a ‘tempting bear market rally’ with potential gains up to 20%
Technical analysis shows a support zone from $23.48 to $23.61 and a resistance line at $26.68. PINS 20-50-200 SMA lines chart. Source. Finviz.com data. See more stocks here.
Analysts rate the stock a moderate buy, with the average price in the next 12 months reaching $26.32, 6.86% higher than the current trading price of $24.63. Notably, out of 21 Wall Street analysts, eight have a buy rating, and thirteen have a hold rating. Wall Street analysts price targets for PINS. Source: TipRanks Bright future
With the recent speculations that PayPal (NASDAQ: PYPL) may be pursuing the acquisition of Pinterest, as well as the strong revenue growth seen during their latest earnings, it seems that the momentum is turning positive for PINS.
The current analyst upgrade could serve as a boon for the shares, as investors who were ambivalent about the stock, could look for an entry position here and push the price action higher.
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