Pinterest Shares Falls as Analysts’ Quiet Period Comes to an End

(Bloomberg) -- Pinterest Inc. will face a flood of Wall Street commentary come Monday, and the question is whether the social networking site has more room to run after gaining more than 50% since its public offering of stock last month.

Shares fell for a second session on Friday, down as much as 3.9% in early trading, though the price has surged since trading began on April 18. Banks that underwrite a company as it goes public tend to be more bullish, but Pinterest’s recent share action could be a sign that analysts will see the company’s stock as already fully valued.

Pinterest Shares Falls as Analysts’ Quiet Period Comes to an End

“While we find Pinterest’s visual discovery platform truly unique and its mid-to-low funnel return prospects for advertisers promising, we also acknowledge an incredibly competitive digital ad marketplace and daily time spent on social platforms nearly maxed out,” Rosenblatt analyst Mark Zgutowicz said in a note.

Zgutowicz rated Pinterest an equivalent of hold, as did Argus analyst Jasper Hellweg, who said the stock is “fully valued” and already reflects strong revenue growth and advertising opportunity.

Read More: Nomura Sees Rapid User Growth, Initiates Pinterest With Buy

Stay tuned Monday for banks that underwrote Pinterest’s IPO to initiate coverage, when the 25-day quiet period observed by those analysts ends. Goldman Sachs, RBC Capital Markets, JP Morgan, Deutsche Bank Credit Suisse, Citi, Barclays, BofAML and Allen & Co. led the listing

Pinterest has already collected three recommendations to buy, three hold-equivalents and 1 sell rating, according to data compiled by Bloomberg. The average 12-month analyst price target is $26, implying a potential loss of almost 8% against Thursday’s close.

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