Pinterest's (PINS) recently launched Performance+ artificial intelligence-enabled platform can help the image-sharing company close a monetization gap, RBC Capital Markets said in a note emailed Tuesday.

The company rolled out Performance+ in October.

"Key to Pinterest's underperformance has been the extended lag between value creation and value capture despite our view that recent platform enhancements such as direct links are driving incremental value for which Pinterest should be getting [paid]," RBC analyst Brad Erickson said in a note to clients.

Although Performance+ could help Pinterest close this monetization gap, more evidence of this potential is required from advertisers going forward, Erickson said. Pinterest's execution to monetize has been somewhat disappointing so far, but the brokerage expects the company to gain momentum in 2025.

RBC has an outperform rating and a $48 price target on the Pinterest stock.

The company's shares were down more than 3% in recent trading.

Price: 31.98, Change: -1.09, Percent Change: -3.28