.September 24, 2024 2:11:00 PM

Pinterest (NYSE:PINS) shares surged over 3% today as Oppenheimer analysts gave the stock an Outperform rating and a $45 price target. They praised Pinterest as a global discovery platform for high-intent users, ideal for direct response advertising. The platform’s relevant ads enhance user experience, akin to magazines, boosting advertiser ROI. Pinterest is the fastest-growing digital ad platform after Meta, with integrations from Amazon and Google improving auction density and pricing.

Analysts’ positive outlook is backed by a consumer survey, advertiser insights, and user metrics analysis. Despite a smaller DAU base, Pinterest shows potential for increased engagement. Trading at 12x EBITDA, the stock’s valuation is attractive. The $45 price target assumes 17x 2026 EBITDA, reflecting a 4% premium to peers due to the platform’s faster growth rate of 42% from 2023 to 2026.