08:37 AM EST, 11/11/2024 (MT Newswires) -- Pinterest ( PINS ) is "executing well" against its user engagement and monetization strategies and appears set to show growth and profits in line with its guidance, Wedbush said in a note on Monday.

Reaction to the company's Q3 results is "overdone," Wedbush said, and out of line with the company's compound annual growth rate of about 27%.

Among the drivers of the company's growth are partnerships with Amazon (AMZN) and Google (GOOG, GOOGL), new ad surfaces and formats, adoption of ad tools, and work with resellers across less-monetized markets, Wedbush said.

The company's growth has exceeded Wall Street expectations for seven straight quarters, and it has shown adeptness at "converting a higher percentage of users who engage only once a month into users who engage with the platform on a weekly basis," Wedbush said.

Pinterest ( PINS ) has also improved its AI-powered search and recommendation tools to present users with more relevant content and a more personalized experience, the report said.

Wedbush upgraded the company to outperform from neutral with a 12-month price target price of $38 per share.

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