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Pinterest analysts were impressed by yesterday’s investor event, noting that the social networking company was upbeat and that the long-term targets look reasonable.
Citi analysts upgraded the stock to Buy from Neutral with a price target of $36 per share.
“We are upgrading shares of Pinterest to Buy/High Risk as we emerge from its analyst day incrementally confident that engagement can continue to ramp, that ads innovation and its full-funnel approach to advertising can deliver improving monetization trends, and that adj. EBITDA margins can expand going forward,” the analysts said.
DA Davidson analysts raised the rating to buy from Neutral with a price target lifted by $10 to $35 per share.
“Our upgrade is a reflection of our confidence in management’s ability to achieve those financial targets by: 1) increasing engagement on the platform, 2) improving its monetization in not only the US/Canadian region but also the European and Rest of World geographies, and 3) sustaining financial discipline (when it comes to investing while maintaining high margins),” they wrote in a report.
Pinterest shares were up 8% year-to-date through Tuesday’s close.
