. Pinterest’s (PINS) attractive platform will result in double-digit long-term revenue growth – Raymond James

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By Sam Boughedda 

Pinterest (NYSE:PINS) was initiated with an Outperform rating and $33 per share price target at Raymond James on Thursday.

Raymond analysts told investors in a research memo that Pinterest’s unique visual discovery platform and high-intent user base provide an attractive platform for advertisers.

“Pinterest users are typically in-market consumers with high commercial intent, which makes Pinterest an attractive platform for advertisers,” the analysts wrote. “Pinterest’s high intent audience (similar to Google search) should also enable the platform to relatively outperform other digital advertising channels during a slowing macro environment.”

In addition, the firm expects steady user growth for Pinterest going forward with increasing engagement metrics driven by international and increasing personalization. They also see double-digit long-term revenue growth driven by continued product improvements for both Pinners and advertisers, increasing focus on Shopping/eCommerce, video, and international.

“We believe that longer-term EBITDA margins can return to 30%+,” the analysts added. “While Pinterest margins declined in 2022 (we estimate ~16%) due to slower top-line growth and increased investments (including video, shopping, automation tools, and international expansion), we believe that longer-term margins can return to 30%+ as revenue growth improves and the pace of investments moderates.”