Pinterest said revenue growth should accelerate
Shares of Pinterest Inc (NYSE:PINS) are 4.6% higher in premarket trading, after the image sharing company shared a positive revenue update.
Pinterest said at its first investor day that revenue growth should accelerate after slowing down in 2022 and 2023. What's more, the company's board approved a stock buyback program of up to $1 billion of common stock.
Analysts were quick to respond to Pinterest's comments. D.A. Davidson and Citigroup both upgraded PINS to "buy," with raised price targets of $35 and $36, respectively. And while Wells Fargo cut its price target by $1 to $35, Rosenblatt and J.P. Morgan Securities both hiked their price objectives.
There's room for additional upgrades to roll in, too. Coming into today,10 of 21 covering brokerages rated Pinterest stock a "strong buy," with no "sell" recommendations on the books.
An unwinding of options traders' pessimism could add even more tailwinds. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Pinterest stock's 50-day put/call volume ratio ranks higher than 88% of readings from the past year. Echoing this, the security's Schaeffer's put/call open interest ratio (SOIR) of 0.84 ranks in the highest annual percentile.
Should today's premarket gains hold, PINS will reclaim support from its 40-day moving average. It could also add to a relatively slim 8% year-to-date lead.