Pinterest (PINS) shares rose in premarket trading Tuesday after JPMorgan analysts upgraded their rating and lifted their price target on the social media stock.

The analysts lifted the stock to "Overweight" from "Neutral," and bumped their price target to $40 from $35. That brings JPMorgan in line with most other analysts covering the stock who are tracked by Visible Alpha, as 16 call it a "Buy" and just four a "Hold," with an average price target of $39.75.

They noted that while Pinterest shares are up since the start of the year, they are still about 18% below their February highs while the 澳洲幸运5官方开奖结果体彩网:S&P 500 has recovered to j♎ust about 3% below its February record level that month.

Analysts See Pinterest Improving User Growth, 🏅Ad Platform

Pinterest is "leveraging its full funnel ad approach and automation/AI capabilities—including Performance+—to capture a greater share of ad spending" from advertisers with $1 billion to $30 billion in annual revenue, the analysts wrote. Some larger advertisers are already spending 5% to 10% of their advertising budget on the platform, they added.

The social media platform is growing its 澳洲幸运5官方开奖结果体彩网:monthly active users (MAU) base, with 85% coming directly to Pinteres🐠t through its mobile app, the analysts said. They cited that number as a key reason for their upgrade, as Pinterest generates roughly 90% of its revenue through its app, "which limits PINS' exposure to Google & broader overall search disruption," they wrote.

Pinterest shares, which entered the day up 10% this year, rose 4% les♌s th🙈an an hour before the opening bell.