While Pinterest (PINS:US) shares closed 3.2% higher on Tuesday, the stock added a further 5.9% in early Wednesday trade after analysts reflected positively on the company’s updates during this week’s Investor Day.

This surge in share price followed the company's announcement during its first investor day that it expects year-over-year revenue growth to accelerate, marking a shift from the slowdown observed in 2022 and 2023.

In its Investor Day presentation, Pinterest unveiled a compound annual growth rate (CAGR) target for the next three to five years in the mid to high teens. This represents a significant increase from previous guidance, which indicated growth in the high single digits for the third quarter. 

Notably, revenue growth was less than 9% in the prior year, and analysts had been projecting an expansion of approximately 8% for the current year. Furthermore, Pinterest outlined its expectations for the adjusted margin for EBITDA to reach a percentage in the low 30s over the next three to five years. This is a substantial increase from the 15% reported in the second quarter.

As a result, at least two analysts upgraded PINS shares in the aftermath of the presentation.

“We are upgrading shares of Pinterest to Buy/High Risk as we emerge from its analyst day incrementally confident that engagement can continue to ramp, that ads innovation and its full-funnel approach to advertising can deliver improving monetization trends, and that adj. EBITDA margins can expand going forward,” Citi analysts said.

Senator John Hickenlooper and Congressman Ro Khanna were selling PINS shares this year.