Brian Pitz, an analyst from BMO Capital, has initiated a new Buy rating on Pinterest (PINS).
Brian Pitz has given his Buy rating due to a combination of factors pertaining to Pinterest’s monetization opportunities and strategic partnerships. Pitz is optimistic about Pinterest’s integration of Amazon Ads, which is expected to bring additional third-party ad demand and, in turn, accelerate revenue growth starting in the first quarter of 2024. The company’s collaboration with Google Ad Manager is also anticipated to bolster international Average Revenue Per User (ARPU) and contribute to sustained mid-teens revenue growth. Additionally, the potential for closing the ARPU gap in Europe could result in significant EBITDA benefits.
Furthermore, Pitz highlights the role of artificial intelligence in enhancing user engagement and creating new monetization avenues on Pinterest. With features like a generative AI search guide and organizational tools that have already increased user interaction on the platform, these innovations are set to drive further growth. Despite a slight revenue miss in the fourth quarter of 2023, Pinterest’s guidance for the first quarter of 2024 aligns with projections, and the company’s strategic initiatives are on track to meet long-term financial goals. This underpins Pitz’s confidence in Pinterest’s stock and justifies the Outperform rating and $45 target price.
In another report released today, Jefferies also maintained a Buy rating on the stock with a $46.00 price target.
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Pinterest (PINS) Company Description:
Founded in 2000, California-based Pinterest, Inc. provides a visual discovery engine in the United States and internationally. The company operates a pinboard-style photo-sharing website and allows users to create and manage theme-based image collections such as events, interests, and hobbies.
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