RBC Capital upgraded shares of Pinterest (NYSE:PINS) to Outperform from Sector Perform in a note Monday, raising the price target to $46 from $32 per share.
Analysts at the firm said Pinterest "stands out as a way to play the shift of intent-based ad platforms chasing impulse shopping's $241B ad spend."
"Liked by the sell-side but under-owned by the buy-side, we believe PINS is an attractive story underpinned by checks indicating key product cycles starting to work, positive ad load analysis, attractive comps and is a less consensus/partially hedged way to play AMZN," they added.
The analysts acknowledged that MAU growth and the pace of advertiser spending changes are the two biggest risks to their thesis.
However, the firm believes that while it may not be a straight line, they "want to own the potentially seismic LT [long-term] platform changes" that Pinterest management is making.