© Reuters Pinterest (PINS) ‘Positioned well into year-end’ – KeyBank
By Sam Bugedada
KeyBanc Capital Markets said Monday that data from the 3Q22 consumer survey showed that Pinterest (NYSE: ) has returned to growth.
The analyst, who has an overweight rating on Pinterest and a $28 price target, said the firm sees Pinterest’s growth as an encouraging sign ahead of the holiday season and is “well positioned for year-end.”
According to the study, Pinterest and TikTok are the only services tied year-over-year, “setting a high watermark on a 5-quarter basis.”
“Pinterest does slightly better during holiday shopping – we suspect there are some seasonal events (eg back-to-school, weddings, etc.). However, we’re encouraged to see Pinterest’s 5-quarter engagement up and back to q/q growth,” he said. wrote the analyst.
“We are bullish on positioning and improving performance history. While we recognize that the macro environment is cloudy, Pinterest has several factors in its favor: 1) heavy US exposure, 2) heavy retail, e-commerce and CPG exposure; and 3) large merchant exposure. From the holiday marketing campaign ( Positive for user growth) and combined with the creator’s Pinback option (MSD% revenue windfall for ~4Q), we see Pinterest as strong in the near term.