Pinterest and Snap now top Wells Fargo's overweight list

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Pinterest and Snap now top Wells Fargo's overweight list
Credit: © Reuters.

Wells Fargo analysts have moved Snap (SNAP) and Pinterest (NYSE: PINS ) to the top of their Overweight list, with the firm seeing company-specific drivers for revenue acceleration in 2024 for both names.

In a note, Wells Fargo maintained an Overweight rating on both stocks, raising the PINS price target to $47 from $38 per share. They maintained a $22 price target on SNAP.

The bank said Snap's 2024 revenue bridge shows the above-consensus forecast is achievable and even conservative, with healthy contributions from Snap+ subscriptions and Spotlight.

Furthermore, Wells Fargo expects Spotlight to become a larger contributor to ads growth in 2024 with $204 million in revenues. They also view emerging MyAI ads as an opportunity to generate revenue from lightly monetized core chatting engagement.

Meanwhile, Wells Fargo sees continued "PINS ad load improvement post-AMZN integration based on recent WFS testing as positive for '24 impressions and revs growth."

The bank expects further ad load improvement for PINS in 2024 as monetization increases in previously under-monetized categories. Wells Fargo forecasts PINS impressions growth acceleration to continue in the US, Canada, and internationally.

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