Guggenheim upgraded PINS to "buy"
Pinterest Inc (NYSE:PINS) stock is 4.3% higher in premarket trading, after Guggenheim raised its rating from "neutral" to "buy" and increased the price target from $39 to $40. The analyst cited PINS' recent pullback as an attractive entry point for investors, highlighting the company's ongoing global user growth and monetization potential.
The equity has struggled of late, shedding 25.7% over the past nine months. However, last week saw Pinterest stock snap a five-week losing streak, as it continues to benefit from support at the $31 level.
Analysts are already overwhelmingly bullish, though there's room for more upgrades to roll in. Specifically, eight of the 32 covering brokerages rate PINS a tepid "hold." The equity could also benefit from a shift in the options pits. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Pinterest stock's 50-day call/put volume ratio ranks higher than 90% of readings from the past year.
Now looks like a great time to weigh in with options. Pinterest stock's Schaeffer's Volatility Index (SVI) of 39% sits in the 15th percentile of its annual range, indicating implied volatilities are favorable for premium buyers at the moment.