Argus analysts raised their rating for Pinterest (NYSE:PINS) from Hold to Buy, setting a price target of $45.00.

The analysts noted that Pinterest is increasingly being recognized as a shopping destination by its users, with a significant portion of them intending to make purchases when visiting the platform.

They anticipate growth for Pinterest driven by several factors: an increase in user numbers, higher user engagement (such as more likes and comments), rising advertising prices, and an increase in ad loads (the number of ads displayed per view).

To enhance its shopping appeal, Pinterest is expanding its product offerings and utilizing artificial intelligence to provide more accurate recommendations. Additionally, the company is collaborating with Amazon to boost ad loads and attract new advertisers. This strategic approach is expected to contribute to Pinterest's growth, justifying the upgrade to a Buy rating.