D.A. Davidson analyst Tom Forte began coverage of Pinterest Inc. PINS, +0.00% with a neutral rating and $16.50 price target. The company is expected to go public later this month. Pinterest “provides consumers an impressive visual-based discovery platform for merchandise and advertisers a large and growing global base of consumers with purchase intent,” wrote Forte, which is a “powerful combination” that could drive revenue and profit growth over the long run, in his view. However, Forte argued that the midpoint of the company’s expected price range of $15 to $17 a share “already reflects our favorable view of Pinterest including its growth prospects.” As Pinterest prepares for an initial public offering, the Renaissance IPO ETF IPO, +0.07% is up 34% on the year and the S&P 500 SPX, -0.09% has gained 16%.

Have breaking news sent to your inbox. Subscribe to MarketWatch’s free Bulletin emails. Sign up here.