11:56 AM EST, 12/10/2024 (MT Newswires) -- Pinterest's ( PINS ) recently launched Performance+ artificial intelligence-enabled platform can help the image-sharing company close a monetization gap, RBC Capital Markets said in a note emailed Tuesday.

The company rolled out Performance+ in October.

"Key to Pinterest's ( PINS ) underperformance has been the extended lag between value creation and value capture despite our view that recent platform enhancements such as direct links are driving incremental value for which Pinterest ( PINS ) should be getting [paid]," RBC analyst Brad Erickson said in a note to clients.

Although Performance+ could help Pinterest ( PINS ) close this monetization gap, more evidence of this potential is required from advertisers going forward, Erickson said. Pinterest's ( PINS ) execution to monetize has been somewhat disappointing so far, but the brokerage expects the company to gain momentum in 2025.

RBC has an outperform rating and a $48 price target on the Pinterest ( PINS ) stock.

The company's shares were down more than 3% in recent trading.

Price: 31.98, Change: -1.09, Percent Change: -3.28