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Shares of Pinterest (PINS) - Get Free Report  rose nearly 4% Monday after the social media company's stock was upgraded to outperform from sector peform at RBC Capital Markets.

Analyst Mark Mahaney also increased his price target to $35 from $30, citing strong user trends, evidence of innovation in the social media company's ads platform and "room to ramp monetization." 

Mahaney said in a note Monday that he believes Pinterest "occupies a relatively unique position as a high-intent Discovery tool."

He also noted the lockup period for the company since its IPO expired on Oct. 15.

"Our analysis of 60+ tech IPOs since 2017 shows lockup periods have generally acted as a significant overhang leading up to the expiration (median 3-month prior return: -11%), with performance improving thereafter (median 3-month after return: +8%)," he wrote.

Pinterest shares were up 3.6% to $26.22 on Monday. 

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