Pinterest: Market Constantly Overreacts

Updated - Sept. 25 

Oppenheimer sees nearly 50% upside on the $31 stock. 

• Oppenheimer initiated coverage of Pinterest (NYSE:PINS) with an "Outperform" rating on Tuesday. They think the company's platform is lending itself well to direct response advertising and believe investments in engagement and monetization will drive upside to long-term investor estimates, helped by its more than 500 million monthly users.
• The research firm noted that while PINS's DAU base is the smallest among social media companies, they see upside to engagement. They also view the company's valuation as attractive at 12x EBITDA.
• Pinterest has a PT of $45, implying an upside of 48%. 
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Originally posted on Aug. 23

• Pinterest produces consistent revenue growth, but the stock is struggling to gain traction.
• The social media company grew MAUs in Q2 to a record 522 million, up 12% YoY.
• The stock is a bargain at the current 5x forward EV/S multiple after the steep decline in the last month.

Pinterest, Inc. (NYSE:PINS) has hardly rallied off the yearly lows, yet the social media company has consistently grown revenues over this period. The stock market has gone through a strange period where growth isn't always rewarded, unless the growth rate is consistent. My investment thesis remains ultra-Bullish on the stock, especially after the post-Q2 selloff.

Read the full article on Seeking Alpha. 

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