Analyst Brian Nowak from Morgan Stanley maintained a Buy rating on Reddit Inc Class A (RDDT – Research Report) and increased the price target to $210.00 from $200.00.
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Brian Nowak has given his Buy rating due to a combination of factors that highlight Reddit Inc’s strong momentum and its potential for further monetization. The company’s recent results and positive guidance for the first quarter have reinforced confidence in its growth trajectory, as reflected in an increase in projected revenue and adjusted EBITDA by 2026. Nowak believes that Reddit’s ongoing innovation in advertising, particularly through machine learning models, measurement improvements, and creative optimization, will continue to enhance performance for advertisers.
Additionally, Reddit’s ability to attract a broad range of advertisers across key verticals, with notable growth in sectors like finance and retail, supports a positive outlook. The company is also making significant strides in enhancing user experience by segmenting user cohorts more effectively and rolling out platform improvements, such as better conversion tactics for logged-out users. These strategic enhancements are expected to drive user engagement and retention, further solidifying Reddit’s market position and justifying the Buy rating.
In another report released today, Citi also maintained a Buy rating on the stock with a $220.00 price target.