DA Davidson initiated coverage of Pinterest with a Buy rating and $26 price target. The company has done an excellent job continuing to grow y/y engagement at low double digits for the past 10 straight quarters, while continuing to grow global average revenue per user at mid to high single digits, the analyst tells investors in a research note. Despite Pinterest demonstrating its ability to continue growing monthly active users and average revenue per user, valuation on the stock has continued to decline even though competition for both engagement and advertiser spend has continued to increase, the firm added.
