🚀 ProPicks AI Hits +34.9% Return!Read Now

Roughly 40-45% Of Pinterest User Base In Unexplored Regions Will Boost Revenue - This Analyst Presents Bullish Case

Published 23/10/2023, 18:25
© Reuters.  Roughly 40-45% Of Pinterest User Base In Unexplored Regions Will Boost Revenue - This Analyst Presents Bullish Case
PINS
-

Benzinga - by Lekha Gupta, Benzinga Editor.

Pinterest Inc (NYSE: PINS) shares are trading higher after Stifel analyst Mark Kelley upgraded the stock to Buy from Hold at a higher price target of $32 from $27.

The analyst is bullish on the stock, as the partnership with Amazon.com Inc (NASDAQ: AMZN) is expected to be successful on holiday season spending.

Pinterest is in the early stages of international monetization (accounting for less than 20% of revenue), and the analyst expects this gap to close over time as the company grows its advertisement sales in existing regions and expands ad offerings into unmonetized geographies.

Overall, the analyst sees roughly 40-45% of the Pinterest user base in unexplored regions, boosting ARPU.

Also, accelerating digital advertising in line to ahead of internal plans can act as a tailwind, says the analyst.

Kelley writes that more brands will increasingly consider Pinterest a place to spend more over time.

Kelley estimates revenue and adjusted EPS of $3,043.3 million (vs. consensus: $3,033.4 million) and $1.01 (vs. $0.97 street view) for FY23 and $3,587.1 million (vs. street view $3,492.3 million) and $1.34 (vs. $1.20 consensus) for FY24, respectively.

Also Read: Entravision & Pinterest Ink Global Deal: Tapping Unserved Ad Markets And Beyond

Price Action: PINS shares are trading higher by 3.06% at $26.76 on the last check Monday.

Latest Ratings for PINS

DateFirmActionFromTo
Mar 2022BenchmarkInitiates Coverage OnHold
Feb 2022Credit SuisseMaintainsNeutral
Feb 2022UBSMaintainsNeutral
View More Analyst Ratings for PINS

View the Latest Analyst Ratings

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.