There are reasons to be excited about Pinterest , according to HSBC. Analyst Mohammed Khallouf initiated coverage of the social media platform with a buy rating and a price target of $32.10. That target indicates that Khallouf thinks shares can rise 23.2% from Monday’s close. “We believe it has the right management team in place, a product fit for shopping, and a differentiated capital-light strategy to deliver on its foray into social commerce,” Khallouf said in a recent note to clients. CEO Bill Ready, who took the helm in 2022, is part of a new management team that is “already making its mark felt,” Khallouf said. The analyst pointed to the shift away from competing on short-form videos, the shut-down of Pinterest’s creator rewards program and a reduction in headcount as some of the moves Ready’s team has already initiated. It’s all being done in a bid to improve operations while enhancing margins, as well as bolstering Pinterest’s reputation as a positive platform that advertisers want to be on. That positive and apolitical message can be a boon and resonate with advertisers, Khallouf said, especially given heightened political polarization. A focus on social commerce has already begun bearing fruit, Khallouf said. Click-through rates and saves of “pins” that have a capability component grew 50% year over year in the second quarter, up from 35% year over year in the second quarter of 2021. Overall revenue also rose on an annualized basis in the first half of 2023, which Khallouf said was especially notable given smaller social media platforms struggled in the period. Investors appeared focused on the company not raising guidance following second-quarter earnings, according to Khallouf. But the analyst said to still expect topline growth to accelerate in the future. Pinterest’s recent agreement to use Amazon for third-party advertisements should also improve monetization for the company, Khallouf noted. He added that the deal could be particular useful in helping Pinterest make up ground against bigger players when it comes to courting small- and medium-sized businesses. The stock has underperformed the broader market this year, up about 7.3%. Shares rose marginally before the bell on Tuesday following the call. — CNBC’s Michael Bloom contributed to this report.