Pinterest named a top pick by this fund manager

Linde Equity Fund analyst Teal Linde told BNN Bloomberg’s Market Watch on Sept. 8 that Pinterest (Pinterest Stock Quote, Chart, News, Analysts, Financials NYSE:PINS) has managed to integrate advertising in a way that keeps users engaged, making the company stand out in the digital advertising space.

“Pinterest has been able to increase the number of ads on the platform while still seeing user engagement rise,” Linde said. “That’s unusual, normally, when you see more ads, engagement drops. But new management, along with machine learning and AI, has made the advertising work.”

He described Pinterest as a “growth at a reasonable price” opportunity, citing revenue growth of 15–16% and earnings growth above 20%, both well ahead of the broader market.

“The company’s valuation is only about 21 times this year’s earnings,” he said. “Whenever you can find a business that’s growing twice as fast as the market but trading at a lower multiple, it’s compelling. If you had 30 of those in your portfolio, growing your account would be much easier.”

Shares of Pinterest have risen 29.6% over the past year but remain down 8.7% over five years. On the Street, 34 analysts rate the stock “buy” and eight “hold,” with a consensus target price of US$47.67.

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