It’s the classic good-news/not-so-good-news scenario for analysts who follow Pinterest Inc. and Snap Inc.
Pinterest PINS, +6.59% is primed for a prosperous holiday season after striking a partnership with Amazon.com Inc. AMZN, -0.11%, leading to a price-target hike to $34 from $23 and an upgrade to overweight, according to Wells Fargo research note on Tuesday.
“We believe Pinterest is making the optimal strategic move to outsource
monetization to third parties to overcome its attribution and scale challenges,” Wells Fargo analyst Ken Gawrelski wrote. “This includes an announced partnership with Amazon, now expected to be live in time for the 2023 holiday season, and future expected partnerships with other scaled retail media networks.”
The outlook isn’t quite as bright for Snap SNAP, +1.48%. Gawrelski expects Snap to report “modest upside to Street consensus.”
Although fears over brand advertising are decreasing among industry watchers, that factor makes up just one-third of Snap’s total revenue and there is “no meaningful evidence of progress on Snap-specific direct response advertising
fixes,” Gawrelski said in a note Tuesday.
He maintains a price target of $10 for shares of Snap.