© Reuters. Pinterest (PINS) jumps on Wells Fargo upgrade due to upcoming Amazon holiday partnership
Pinterest (NYSE:) shares gained 4% in pre-open trading Wednesday after Wells Fargo analysts boosted his rating on the stock to Overweight from Equal Weight and lifted his price target by nearly 50% to $34 per share.
The analysts highlight that as the highly anticipated 2023 holiday season approaches, Pinterest has strategically initiated a live partnership with e-commerce behemoth Amazon (NASDAQ:). This collaboration aims to improve engagement trends and leverage a higher ad load, paving the way for accelerating revenue growth that surpasses market expectations. By capitalizing on this strategic alliance, Pinterest is well-positioned to maximize its potential during the holiday season and beyond.
A 10% boost in Pinterest’s international revenue per monthly active user (MAU) is projected to yield a positive 2% to revenue and 4% to EBITDA in 2024, they added.
Furthermore, with the new partnership in place, the analysts anticipate a significant step-function increase in revenue, particularly considering that Pinterest’s revenue per minute stands at approximately 20% less than that of Meta (NASDAQ:) in international markets.
The firm’s MAU forecast is now a modest 1% higher, while 2023 and 2024 revenue rise 2% and 6%, respectively. Meanwhile, adjusted EBITDA is now at $577 million and $835 million for the two-year period.
