Goldman Sachs analyst Eric Sheridan reiterated a Buy rating on Pinterest, Inc. ( PINS ) on Friday, raising the price forecast from $40 to $42.

On Thursday, Pinterest ( PINS ) reported first-quarter revenue of $855 million, beating estimates of $846.59 million.

The idea discovery platform company reported first-quarter adjusted earnings of 23 cents per share, missing analyst estimates of 26 cents per share.

Sheridan characterized Pinterest’s first quarter results as strong overall, emphasizing several encouraging trends.

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The analyst pointed to revenue growth that exceeded the high end of guidance, attributing this strength to the platform’s effective full-funnel strategy and increasing traction with its Performance+ ad suite. Sheridan also noted the continued improvement in adjusted EBITDA margins, building on momentum established during the company’s Investor Day, which took place 18 months ago.

Management described the advertising environment as generally healthy, while acknowledging a shift in consumer behavior toward more thoughtful spending — a dynamic that could benefit Pinterest ( PINS ) as users seek inspiration for intentional purchases.

Sheridan highlighted that Pinterest ( PINS ) reiterated its capital allocation strategy, with approximately $1.7 billion, or about 8% of its market cap, still authorized for repurchases.

Although near-term focus may remain on the broader macroeconomic backdrop and how it could affect ad spend, Sheridan wrote that Pinterest’s leadership continues to drive operational consistency in line with its long-term vision.

The analyst underscored the company’s ongoing focus on product and platform innovation, including efforts to scale monetization through shoppable content, performance-based advertising, and strategic partnerships.

For the second quarter of FY25, Sheridan now expects revenue to reach $972 million, up from the prior estimate of $941 million, with adjusted EBITDA projected at $230 million versus the previous $217 million. He also raised his GAAP EPS forecast for the quarter to 5 cents, up from 4 cents. Looking at full-year FY2025, Sheridan revised revenue expectations upward to $4.12 billion from $4.02 billion, while adjusted EBITDA is now forecasted at $1.21 billion, up from $1.14 billion.

PINS Price Action: Pinterest ( PINS ) shares are trading higher by 5.92% to $29.51 at last check on Friday.

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