Shares of Pinterest (NYSE:PINS) experienced a 3% rise intra-day today following the initiation of positive research coverage by New Street Research.

The analysts selected Pinterest as a new Top SMID Cap Pick, starting coverage with a Buy rating and setting a Street-high price target of $48 per share. The analysts believe that the near-term adjusted EBITDA consensus for Pinterest has room for growth, while the long-term guidance appears conservative.

A key focus for most investors is Pinterest’s recent advertising partnership with Amazon in the U.S. and the potential for this to extend to additional partners and countries. However, the analysts suggest that the market may be underestimating the structural leverage Pinterest could gain on sales expenses as third-party (3P) ad revenue increases as a percentage of total revenue.

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