[ad_1]
Shares of Pinterest Inc.
PINS,
were rallying about 3% in Monday’s after-hours action after Evercore ISI analyst Mark Mahaney turned bullish on the social-media stock. Mahaney is more upbeat about Pinterest amid signs of stabilization in the digital-ad market and “increasing evidence” that the company is getting results out of the operational improvements it’s made under Chief Executive Bill Ready, who took over the top post just over a year ago. Those two factors “are combining to create something of a fundamental inflection point, with material revenue growth acceleration and substantial margin expansion a distinct probability over the next 2-4 quarters.” He sees the potential for “very high double-digit” growth in earnings before interest, taxes, depreciation and amortization, which could drive a “re-rating” of the stock, meaning that investors could come to assign it a higher multiple. Pinterest shares have advanced 20% so far in 2023 as the S&P 500
SPX,
has gained 18%.
[ad_2]
Source link
