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

Pinterest Inc 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 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.