2023-12-11 08:28:50 ET
Shares of Snap ( NYSE: SNAP ) and Pinterest ( NYSE: PINS ) rose on Monday, before the opening bell, as the tech companies were upgraded by brokerages eyeing a favorable outlook for the advertising industry.
Shares of ( SNAP ) gained after Wells Fargo upgraded the stock to Overweight from Equal Weight and upped its PT to $22 from $8 noting "reinvestment in ad tech stack, new ads mgmt, and renewed focus".
The social media company was trading 4.71% higher to $15.09 with Wells Fargo seeing, "Advertising positively inflecting at Snap for the first time since Apple's privacy initiatives in April '21".
Wells Fargo also raised estimates for '24/'25 revenue growth to 19%/18%, respectively, well above the Street at 11%/15%.
The financial services company added, "With a renewed focus on cost discipline, WELLS sees high flow through to EBITDA and estimate 2024/2025 of $517M/$1.01B, 98%/55% above the Street".
Meanwhile, shares of Pinterest ( PINS ) rose in premarket market trading as RBC Capital Markets upgraded the tech company to Outperform from Sector Perform and raised its PT to $46 from $32.
PINS shares were up 2.61% to $34.91 in premarket action as RBC noted that the stock is positioned better to address the $241B impulse shopping porting of digital advertising.
The financial services firm also saw PINS as an "attractive story" and said, "Relative to their digital ad peers, we find PINS’ acceleration standing out in terms of its magnitude to the mid/high-teens while we’re also intrigued at its over-indexed exposure to larger advertisers".
RBC analysts further raised top and bottom line estimates on PINS for '24 to 15% y/y growth for revenue versus 12% previously and 300 bps of margin expansion y/y versus 200 bps previously.
In November, both SNAP and PINS were upgraded at Jefferies as the bank saw growth ahead for both tech companies.
More on Pinterest, Snap, etc.
- Pinterest: Taking To Hold After Strong Performance (Downgrade)
- Clicks To Cash: Pinterest's Strategic Leap Into E-Commerce, But Beware Of Challenges
- Pinterest Is Soaring, But It's Time To Downgrade
- Biggest stock movers today: Zoom Video, Cigna, Macy's and more
- Snap on track to break its 10-day win streak; shares marginally lower
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Snap, Pinterest gain as brokerages see improving advertising outlook