2023-04-06 14:05:11 ET
- Pinterest ( NYSE: PINS ) was a top gainer in Communication Services stocks, up 3.6% on Thursday headed into a market holiday, after Raymond James launched coverage of the stock at Outperform.
- "Pinterest’s unique visual discovery platform and high-intent user base provides an attractive platform for advertisers," analyst Aaron Kessler said in the initiation.
- The positive fundamental view also rests on expectations for "steady user growth going forward and increasing engagement metrics driven by international and increasing personalization," Kessler said.
- "We expect double-digit long-term revenue growth driven by continued product improvements for both Pinners and advertisers, increasing focus on Shopping/eCommerce, video, and international," he said, adding the belief that longer-term margins for earnings before interest, taxes, depreciation and amortization can get back to 30%-plus.
- Kessler has a $33 price target, currently implying 17% further upside.
- This week, RBC Capital Markets suggested that Pinterest may be close to cementing a significant third-party media network partnership with Google .
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Pinterest joins top Communications gainers as Raymond James starts on positive note