Pinterest's (PINS) current consensus estimates still reflect a conservative slant and do not appropriately capture the potential upside from the company's more recent initiatives to drive monetization and engagement, Wedbush said in a Monday note.

Despite the company's "strong results and healthy guidance" in the past quarter, full-year consensus estimates have remained relatively flat, implying slower growth in H2, Wedbush analysts said. The company will be able to sustain near-term growth in the mid-to-high teens, with advertiser sentiment remaining encouraging, they said.

The introduction of new content formats and ad surfaces built on the company's unique first-party data signals "continue to drive deeper engagement and better shopping experiences," supporting consistent growth of monthly active users, ahead of expectations, the analysts said.

The analysts said they anticipate the platform delivering upside to expectations over the intermediate-term as the company has proven their ability to broadly capture value from the introduction of new tools and features at scale over the last two years.

Wedbush reiterated the company's stock rating at outperform and maintained the $40 price target.

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