Pinterest (PINS) is scheduled to report the results of its first fiscal quarter after market close on April 27, with a conference call scheduled for 4:30 pm EDT. What to watch for:

'CHALLENGING USER TRENDS': On March 28, Morgan Stanley analyst Brian Nowak downgraded Pinterest to Equal Weight from Overweight with a price target of $30, down from $53. The company's user and time spent trends are challenging while the company is shifting existing time spent toward lower-monetizing creator videos, the analyst tells investors in a research note. Nowak further states that the larger platforms with more engineers, ad sales people and existing advertisers like Facebook (FB) and Google (GOOGL) will be advantaged in their ability to monetize this format over smaller players like Pinterest.

On April 19, Rosenblatt analyst Barton Crockett initiated coverage of Pinterest with a Neutral rating and $21 price target. The loss of users in recent quarters is driving a major surge in spending that pressures adjusted EBITDA even as sales growth looks strong, Crockett tells investors. Meanwhile, "persistent talk of potential merger suitors" has not kept the shares from being swept up in the sharp turn against high multiple growth stocks, the analyst added.

BROADER SECTOR 'HEALTHY': Also on April 19, Citi analyst Ronald Josey assumed coverage of Pinterest with a Neutral rating and price target of $27, down from $28. The broader sector is "healthy" as consumer engagement online continues to be more immersive and grow, say Josey, who sees "multiple vectors ahead for sustained growth."

DEMOGRAPHIC 'ACHILLES HEEL': Pinterest has always offered unique visual IP and high utility to its "predominantly female audience," but its niche demographic has been "its Achilles heel," Benchmark analyst Mark Zgutowicz said on March 1. Competition for social and leisure time in short video, including Tik Tok and Instagram Reels, "could not be fiercer," and he sees "near insurmountable odds" to match competitive economics for both creators and advertisers in this area despite Pinterest's ambitions to compete here and social commerce broadly, the analyst added.

STOCK SHOULD UNDERPERFORM GROUP: Cleveland Research analyst Chandler Converse downgraded Pinterest to Neutral from Buy as he reduced his 2022 revenue estimates and said he expects the stock to underperform the group.

OUTLOOK:  In February, Pinterest forecast Q1 revenue up in the high teens year-over-year, with non-GAAP operating expenses up around 10% quarter-over-quarter.

While user growth trends that have challenged the stock may not improve until late-2022, there is a "strong pipeline" for an already robust monetization story as shopping becomes a larger driver of activity on the network, Loop Capital analyst Rob Sanderson said. Sanderson further stated that the easing of supply chain issues should help CPG advertisers, which is a "key vertical" for Pinterest.