Redburn analysts cut Pinterest’s rating to Neutral while boosting its price target from $17 to $23, arguing that the company’s repeated reliance on its existing growth approach has limited its ability to diversify revenue amid a split between AI-driven advertising leaders and smaller platforms.

Pinterest shares reacted positively, closing at $20.33 for a 2.06% gain, as investors balanced concerns over strategic stagnation with optimism about a higher target valuation.