Pinterest Inc (NYSE: PINS) has already gained about 25% this year but a Raymond James analyst is convinced it’s not done pleasing its shareholders just yet.

Pinterest stock could climb another 20%

Aaron Kessler assumed coverage of the social media company on Friday with an outperform rating. His $33 price target suggests another 20% upside from here.

The analyst is bullish on Pinterest stock primarily because he expects the company to steadily grow over the long term. His research note reads:

Pinterest’s unique visual discovery platform and high-intent user base provides an attractive platform for advertisers, [and] we expect steady user growth going forward and increasing engagement metrics.

In February, the image-sharing platform reported better-than-expected earnings for its fiscal fourth quarter. Revenue, however, came in shy of estimates.

Pinterest can navigate the advertising headwinds

Pinterest Inc relatively less exposed to the ad privacy headwinds as well. Put together with its high-intent userbase, Kessler expects it to outperform in the midst of a macro slowdown.

With revenue growth, the Raymond James analyst is confident that Pinterest could nearly double its margins from 16% in 2022 to over 30%. He added:

We expect double-digit long-term revenue growth driven by continued product improvements for both Pinner and advertisers, increasing focus on shopping/eCommerce, video, and international.

Pinterest stock could also benefit from the company’s commitment to turning leaner and cutting costs. To that end, it announced plans of cutting 150 jobs in February.  

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