Missed Out On Meta Action? Analyst Says This Rival Social Media Stock Can Run Up 30%

Shares of Pinterest, Inc. PINS received a price target boost on Monday as the social commerce company prepares to release its quarterly results later this week.

The Pinterest Analyst: KeyBanc Capital Markets analyst Justin Patterson maintained an Overweight rating and increased the price target from $37 to $48, a 30% increase. The new price target presents scope for a 21% upside potential.

The Pinterest Thesis: Pinterest will likely report a solid fourth quarter, with 14% revenue growth and a 1% beat, and guide to 15-17% revenue growth, said Patterson in a note. “Our view reflects a solid ad market for
retail/e-commerce and CPG, as well as product innovation and partnerships,” the analyst said.

Fourth-quarter EBITDA will likely be 4% above consensus at $370 million, Patterson said. The company could surprise to the upside and exceed KeyBanc’s 37% margin forecast due to its recent expense efficiencies, he said.

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Pinterest’s monthly active users may be tracking in line with the consensus of 488 million, the analyst said, citing Apptopia data.

Patterson expects the tailwinds to continue into 2024 and raised his 2024 and 2025 revenue as well as EBITDA estimates.

Among the areas that will be on the radar are updates on Amazon partnerships, visibility into new partnerships, ad load versus pricing, cookie depreciation, and new verticals.

Meta Platforms, Inc. META rose over 20% on Friday after the company reported a fourth-quarter beat and issued upbeat guidance. The company announced its maiden dividend and also a $50 billion fresh stock buyback authorization.

Price Action: In premarket trading on Monday, Pinterest shares rose 0.40% to $39.91, according to Benzinga Pro data.

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