KeyBanc Trims Target on Pinterest (PINS) to $35, Citing Falling Valuation Multiples

Core Insights - Pinterest Inc. is identified as one of the best beaten down growth stocks to buy now, despite recent challenges in its stock performance and target price adjustments by analysts [1][5]. Target Price Adjustments - KeyBanc reduced its target price for Pinterest from $40 to $35, a decrease of 12.5%, while maintaining an Overweight rating, citing falling valuation multiples as a key factor [1]. - Mizuho also cut its target price from $45 to $35, while keeping an Outperform rating, indicating that current challenges are already reflected in the stock price [2]. Restructuring Plan - Pinterest announced a global restructuring plan on January 26, which includes cutting 15% of its workforce over the next nine months, with initial restructuring costs estimated between $35 million and $45 million [3]. - BofA estimated that this restructuring could lead to annualized savings of $300 million and potentially boost EBITDA margins to the low-30s [4]. Stock Performance - Following the announcement of the restructuring plan, Pinterest's stock price fell by as much as 25.4% to $19.32, before slightly recovering to $19.60 [5]. - Despite the decline and recent target price cuts, analysts maintain a bullish outlook on Pinterest, with a median target price of $35.00, suggesting a potential upside of 78.57% [5].