Pinterest (PINS) has received a new Buy rating, initiated by Mizuho Securities analyst, Wei Fang.
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Wei Fang has given his Buy rating due to a combination of factors that highlight Pinterest’s strategic positioning and growth potential. The company is leveraging advancements in AI and machine learning to enhance its advertising technology, which is expected to expand its total addressable market and improve user engagement. This technological edge is anticipated to drive faster ad spending, especially from AI-native companies, and improve the measurement of on-platform commercial activities.
Additionally, Pinterest is making significant strides in international monetization, with strong revenue growth expected in European and other global markets. The company’s efforts to increase ad load and enhance its sales go-to-market strategy have already accelerated revenue growth, and these improvements are projected to continue. The positive shift in advertiser perception, viewing Pinterest as a performance destination, further supports the Buy rating, as it indicates a growing confidence in Pinterest’s ability to capture a larger share of advertising budgets.
In another report released on September 26, Bank of America Securities also maintained a Buy rating on the stock with a $44.00 price target.