Pinterest, Inc. (NYSE: PINS) introduced a range of new advertising formats and features designed to enhance platform monetisation. Key launches include Top of Search ads, Local Inventory Ads, Wide Shopping Ads, Promotions, and Where-to-Buy links.
Bank of America Securities analyst Justin Post reiterated a Buy rating on Pinterest with a $44 price forecast, citing faster U.S. user growth and new ad tools to boost monetisation.
The analyst noted that Pinterest’s recent Pinterest Presents event showcased a wide range of new ad formats and features. The event also introduced new data and measurement solutions, including Media Network Connect.
Also Read: Why Pinterest’s AI Focus And Gen Z Traction Point To Double-Digit Growth
Additionally, Pinterest announced an upcoming programmatic partnership with Magnite Inc. (NASDAQ: MGNI).
The analyst highlighted Pinterest’s Top of Search ads, which position promoted content at the top of results. Early tests delivered a 29% higher click-through rate and a 32% improvement in new clickers.
The analyst added that the format offers strong visibility but requires precise targeting to avoid weakening the search experience.
Pinterest rolled out Local Inventory Ads globally, showing real-time product availability by location. It also launched Wide Shopping Ads, which are four times larger than standard placements, and Promotions that automatically display discounts.
The analyst noted that these formats should increase engagement, but warned that ad load management is crucial to protecting the user experience.
The analyst stated that partnerships with Shopify Inc. (NASDAQ: SHOP), Smartly, Triple Whale, Northbeam, Kroger Precision Marketing, and Instacart Ads will enhance workflows and measurement.
At the same time, a planned tie-up with Magnite Inc. could enhance programmatic reach. These integrations should sharpen targeting and lift advertiser demand over time.
The analyst acknowledged competition from AI rivals like Alphabet Inc.’s (NASDAQ: GOOGL) (NASDAQ: GOOG) Google Mixboard, but noted that U.S. traffic has accelerated, reflecting stronger engagement from Pinterest’s AI tools.
The rollout of Performance and new ad formats is expected to provide a sustained multi-year tailwind.
Valuation was described as attractive, with Pinterest trading at ~13x 2026E EBITDA, below its historical average of 18x and range of 10–30x since 2022. The analyst said this is compelling for a mid-teens revenue grower with 20%+ bottom-line growth potential.
The $44 price forecast is based on 18x 2026E EV/EBITDA, consistent with Pinterest’s historical average and slightly above peer multiples, justified by its early stage of monetization and 30%+ margin opportunity.
Price Action: PINS shares were trading higher by 0.04% to $33.46 at last check Friday.
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