Pinterest's (PINS) new ad products and use of artificial intelligence technology are resulting in stronger user engagement and better return on investment for advertisers, Oppenheimer said in a note to clients emailed Friday.

Oppenheimer highlighted the fact that Pinterest's Q4 revenue rose 18% year on year versus Oppenheimer and consensus estimates of 16% growth, adding that the company's management "sounded confident in the sustainability of current growth."

"While investors have crowned META the AI 'winner' using the technology to drive engagement/ad targeting, PINS is attempting a similar strategy and has a better, older, more affluent audience than SNAP," the note said.

Oppenheimer raised the company's price target to $50 from $40, while keeping the outperform rating.

Pinterest shares were rising 19% in recent trading.

Price: 39.84, Change: +6.25, Percent Change: +18.61