Pinterest (NYSE:PINS) stock is rising higher on Wednesday after getting an upgrade from Wolfe Research analyst Deepak Mathivanan.
This upgrade is boosting PINS stock from its prior “peer perform” rating to a new “outperform” rating. The upgrade is especially bullish next to analysts’ consensus “hold” rating for shares, which is based on eight “buy” ratings and 16 “hold” ratings.
Alongside the upgrade for PINS stock comes a price target of $28 per share. That represents a nearly 27% upside from the Tuesday close. However, it’s slightly below analysts’ consensus rating of $29.08 per share.
Why the Bullish Stance on PINS Stock?
Mathivanan argues that Pinterest has the potential to grow over the next 12 to 18 months. The Wolfe Research analyst cites new CEO Bill Ready as one of the reasons the company could experience growth, but there’s more to it than that.
Here’s part of what Mathivanan said in a note obtained by CBNC:
“We also see M&A with a strategic as a potential outcome for shares, should execution lag over next several quarters, given the activist involvement. Overall, we think risk/reward skews positively at current levels.”
PINS stock isn’t seeing the most activity today, with around 6 million shares on the move currently. That’s a ways off from the daily average trading volume of 15.8 million shares.
PINS stock is up 5% as of Wednesday morning but down roughly 37% since the start of the year.
Investors looking for more of the latest stock market news are in the right place!
We’ve got all of the hottest stock news to get traders through Wednesday! Among that is what has Coupa Software (NASDAQ:COUP), UiPath (NYSE:PATH) and CF Acquisition Corporation VI (NASDAQ:CFVI) stock in the news today. You can read up on all of that at the links below!
More Wednesday Stock Market News
- Coupa (COUP) Stock Gains 10% on Strong Earnings, Stock Buyback
- Why Is UiPath (PATH) Stock Plunging Today?
- Dear CFVI Stock Fans, Mark Your Calendars for Sept. 15
On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.