4 big analyst picks: Pinterest stock gains on Evercore upgrade

Here is your Pro Recap of the biggest analyst picks you may have missed since yesterday: upgrades at Pinterest, Chewy, and Yelp, and initiation at Blade Air Mobility}}.

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Pinterest earns an upgrade at Evercore ISI, shares gain

Pinterest (NYSE:PINS) shares gained more than 3% pre-market today after Evercore ISI upgraded the company to Outperform from In Line and raised its price target to $41.00 from $30.00.

The rating change was based on several factors. First, there is evidence of stabilizing digital ad spend and potential for recovery in H2. Second, the operational improvements implemented by CEO Bill Ready are yielding positive results for users and advertisers. Third, these two factors indicate a fundamental turning point with significant revenue growth and margin expansion expected. Finally, Evercore ISI believes the current valuation is reasonable considering the company's potential for sustained 30%+ EBITDA growth and consistent FCF generation.

The company is set to report its Q2/23 earnings on July 27. Street estimates stand at $0.12 for EPS and $695.71 million for revenues.

Blade Air Mobility started with a Buy rating, stock jumps

Ladenburg Thalmann initiated coverage on Blade Air Mobility (NASDAQ:BLDE) with a Buy rating and a price target of $13.00, as reported in real time on InvestingPro. Shares surged more than 10% yesterday.

According to the firm, Blade, despite being a small player in the U.S. air charter flight market, stands out due to its focus on By-the-Seat passenger services, long-term strategy to fully embrace Electric Vertical Aircraft (EVAs) upon commercial availability, and asset-light approach in procuring the needed aircraft.

Ladenburg Thalmann anticipates revenues to increase by over 45% to $212.8 million in 2023 and climb another 22% organically in 2024.

2 more upgrades

Goldman Sachs upgraded Chewy (NYSE:CHWY) to Buy from Neutral and raised its price target to $50.00 from $42.00, noting the stock presents an appealing risk/reward profile, particularly as the company shifts its focus towards regaining customer growth as well as given the potential for steady margin expansion.

Yelp (NYSE:YELP) shares surged more than 10% yesterday after Goldman Sachs upgraded the company to Buy from Neutral and raised its price target to $47.00 from $38.00, highlighting positive risk/reward and stable/rising local advertising trends.

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