Additionally, Zgutowicz explained that their price target for Pinterest’s sock “reflects a reasonably aggressive assumption” for its monthly active users (MAU and average revenue per users (ARPU) growth particularly in the United States where competition is strong.”
Pinterest’s “path to monetization is relatively straightforward”
On the other hand, Susquehanna Financial analyst Shyam Patil, who initiated a neutral rating on PINS shares, commented it’s difficult to compare Pinterest with its peers because of the lack of transparency around its business particularly its engagement metrics.
In a note to clients, Patil wrote, “Time spent is obviously the much more important metric, but Pinterest doesn’t provide that either.” However, he noted that the company “has shown good monetization ability and has a realistic shot of achieving Twitter-like monetization levels over the coming years.”
“The question is whether Pinterest’s superior data, intent signals and targeting outweigh the likely engagement disparity with Twitter. Our checks largely suggest that the path to monetization is relatively straightforward and generally a matter of execution.”
