Stifel analysts upgraded shares of Pinterest (NYSE:PINS) to Buy, raising the stock price target to $32 from $27 per share in a note to clients on Monday.
In the note, which previewed Q3 earnings for the digital advertising and subscriptions sector, analysts told investors that checks skew more positive, and they believe there is still plenty of room for growth outside the domestic market.
"Our digital advertising checks were largely positive overall (one outlier that we think is agency-specific), with growth that is pacing in line to ahead of internal plans as we exit the year," they wrote.
They note that 2024 visibility remains low. However, Stifel's checks are hopeful the planning process gets back to more historical norms relative to last year (possibly more visibility at year-end vs. start of the year).
Focusing specifically on PINS, the analysts contend that "Pinterest results for 3Q are largely de-risked, with the company noting results were likely to come in at the high-end of the guided range."
In addition, they said utilization rates across SMBs ticked considerably higher, while they also pointed to positive comments regarding the Amazon (NASDAQ:AMZN) partnership. Across its large-cap coverage, Stifel prefers META (NASDAQ:META), TTD, and PINS.