TD Cowen has lowered its price target on Pinterest Inc to $36.00 from $44.00 and kept a Buy rating on the shares. The move follows the company’s latest quarterly results and guidance, which highlighted complications tied to large-retailer ad spending and internal cost actions.
According to InvestingPro data cited by analysts, Pinterest shares were trading at $14.59, placing the stock well below TD Cowen’s revised target and the platform’s InvestingPro Fair Value estimate. That gap led TD Cowen to view the shares as potentially undervalued despite the company’s near-term challenges.
Pinterest reported fourth-quarter revenue growth of 14% year-over-year, a pace that came in about 1% under consensus estimates. The company attributed some of this shortfall to a tariff-driven pullback in spending from large retailers. Fourth-quarter EBITDA also missed consensus expectations by approximately 2%.
Looking ahead, Pinterest’s first-quarter guidance raised additional concerns. At the midpoint, the company’s revenue outlook was roughly 2% below analysts’ estimates while first-quarter EBITDA guidance missed by about 14% at the midpoint. Management pointed to more pronounced tariff headwinds and near-term disruption from January layoffs as explanatory factors for the weaker outlook.
Following the announcement, Pinterest shares declined around 17% in after-hours trading. TD Cowen described that reaction as excessive, suggesting part of the selloff may have been amplified by broader weakness across technology stocks amid heightened attention on artificial intelligence themes.
TD Cowen also noted valuation metrics at the stock’s closing price on February 12, including after-hours movement. Based on the firm’s 2026 estimates, the stock was trading at about 5.1x EV/EBITDA and implied a roughly 13.3% free cash flow yield.
Other brokerages adjusted their views in response to the results. Guggenheim lowered its price target to $25 while keeping a Buy rating. Piper Sandler trimmed its target to $21 and maintained a Neutral rating, citing the company’s quarterly results and first-quarter guidance coming in below market expectations.
Cantor Fitzgerald reduced its price target to $18 and kept an Overweight rating after noting the modest misses in revenue and EBITDA versus Street estimates. RBC Capital took a more negative stance by downgrading the stock from Outperform to Sector Perform and cutting its price target to $17; RBC pointed to a faltering product cycle thesis and ongoing advertiser concentration as key concerns.
Those analyst actions underscore the market’s reassessment of Pinterest’s near-term revenue drivers and product momentum. The company’s explanation for the misses - tariff-related pullbacks among large retail advertisers and the short-term effects of layoffs - framed the guidance weakness that underpinned several firms’ revisions.
Context and implications
While TD Cowen retained a Buy rating and highlighted apparent valuation upside relative to its target and fair value metrics, the broader analyst community responded by trimming expectations and, in some cases, lowering conviction. The developments reflect present uncertainties in advertiser demand, particularly from large retail clients, and questions about how quickly the company can stabilize margins and ad revenue growth amid product and customer-concentration pressures.