Forte described social media company’s platform offering to consumers and advertisers as a “powerful combination” that could boost its profit and revenue over the long term.
He explained that his price target for PINS shares “already reflects our favorable view of Pinterest including its growth prospects.”
In an interview with CNBC’s Squawk Alley, Forte said Pinterest’s stock value is comparable to Roku, which also has an advertising base business model. He believes that both companies “should have fat margin over time.” According to him, the social media company’s IPO price is “a bit pricey.”
Last week, the social media company received a bullish recommendation from James Cordwell, an analyst at Atlantic Equities. He recommended an “Overweight” rating and a 12-month price target of $23 per PINS share.
Cordwell believes that Pinterest has the ability to return to achieving a double-digit growth in the second quarter and replicate its U.S. success overseas.
