Morgan Stanley sees Pinterest shares rising 47% to $27 by 2026 despite recent struggles.

Pinterest shares have fallen sharply, down nearly 30% this year and over 46% in the past year, trading around $18.66. Morgan Stanley cut its price target to $27 from $35 after weak Q4 results but kept an Overweight rating, expecting a 47% upside by end of 2026. The firm highlights Pinterest's growth potential in international markets and small-to-mid-sized advertisers, plus strong free cash flow and buybacks. However, reaching $27 depends on diversifying advertiser base, steady revenue growth, and successful sales transformation amid tariff-related challenges affecting large retailers.