Pinterest's (PINS) new ad products and use of artificial intelligence technology are resulting in stronger user engagement and better return on investment for advertisers, Oppenheimer said in a note to clients emailed Friday.
Oppenheimer highlighted the fact that Pinterest's Q4 revenue rose 18% year on year versus Oppenheimer and consensus estimates of 16% growth, adding that the company's management "sounded confident in the sustainability of current growth."
"While investors have crowned META the AI 'winner' using the technology to drive engagement/ad targeting, PINS is attempting a similar strategy and has a better, older, more affluent audience than SNAP," the note said.
Oppenheimer raised the company's price target to $50 from $40, while keeping the outperform rating.
Pinterest shares were rising 19% in recent trading.
Price: 39.84, Change: +6.25, Percent Change: +18.61
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