Pinterest's (PINS) Q1 results and "better-than-expected" Q2 guidance underscored "strong execution" from management on the considerable monetization potential that the company's platform has to offer, Wedbush analysts said in a Friday note.

"Management continues to demonstrate strong execution against its user engagement and monetization strategy," the analysts said. The risk versus reward of owning Pinterest stock is "compelling in our view for a platform that still has considerable monetization potential

ahead," they added.

Wedbush said the higher-than-expected Q2 guidance might even be on conservative side. It noted that the company has a history of reporting results at the high end of its guidance - if not surpassing it - for several quarters in a row.

Wedbush maintained its outperform rating on Pinterest's stock and raised its price target on the stock to $40 from $38 a share.

Shares of Pinterest were up 11% in recent trading.

Price: 30.87, Change: +3.01, Percent Change: +10.80