Pinterest, Inc. (PINS) stock is soaring 5.15% in pre-market trading on Monday, following a notable upgrade from Guggenheim. The image-sharing platform's shares are attracting investor attention after the brokerage firm raised its rating on Pinterest from "neutral" to "buy" and increased its price target from $39 to $40.

Guggenheim analysts cited an "attractive opportunity" created by the recent share price pullback, emphasizing Pinterest's potential for early-stage global user growth, monetization, and profit expansion. The brokerage expects Pinterest's monetization of its user base to grow at above-market rates from 2025-27, driven by further volume growth and AI-enabled advertising performance improvements.

This positive outlook comes despite Pinterest's challenging start to the year, with the stock having fallen 21.7% in 2024 prior to today's surge. The upgrade has sparked renewed interest in the company, with Pinterest shares rising to $33.83 in pre-market trading, reflecting investor optimism about the platform's growth prospects and potential for improved financial performance.