Pinterest (NYSE:PINS) has been lifted to Buy from Hold at Argus in a note Thursday, with the firm assigning the stock a $45 per share price target.
Analysts at Argus explained that Pinterest users see the site as a place to shop, with more than half of them intending to purchase prior to visiting the company's platform.
As a result, the firm expects "more of these users, higher engagement (e.g., likes, comments), increased ad prices and higher ad loads (i.e., ads seen per view) to drive growth."
Pinterest is aiming to increase shopping on the platform by adding products, using artificial intelligence to make better recommendations, partnering with Amazon to increase ad loads, and adding new advertisers.
"PINS shares have risen 17% since our last note on October 31, reflecting optimism about the company's partnership with Amazon and prospects for accelerating earnings growth in 2024," Argus added. "Given our expectations for growth in revenue and monthly active users, the shares appear undervalued at 29-times our revised 2024 EPS estimate."
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