Wolfe Research analyst Deepak Mathivanan keeps a Peer Perform rating on Pinterest after the Wall Street Journal reported that Elliott Management has taken a 9% stake. The stock in premarket trading is up 14% to $20.05. The analyst highlights three scenarios for the shares, with potential value in the range of $33 to $49. The first is operational improvements, which could drive shares to $33, the second is an acquisition by a strategic, which could value the shares at $36, and third is a go private deal with private equity, which could have the stock worth $49, Mathivanan tells investors in a research note. Mathivanan’s updated fair value range for Pinterest shares is $13-$49, with the low end representing a recessionary financial profile and high-end representing the best possible outcome of the three scenarios.
previous post