.September 25, 2024 10:13 AM

Pinterest Inc. (NYSE:PINS) saw a 4% increase in shares after Oppenheimer gave an Outperform rating and a $45 price target, citing growth potential in digital advertising. The platform’s focus on high-intent users and relevant ads, similar to magazines, drives returns for advertisers. Pinterest is the fastest-growing digital ad platform after Meta, with partnerships with Amazon and Google boosting auction density and pricing. Despite a smaller DAU base, the report sees room for increased user engagement. At a current valuation of 12x EBITDA, the price target is based on a projected 17x 2026 EBITDA, reflecting a 42% growth rate from 2023 to 2026.