Citi analyst Ronald Josey has reiterated their bullish stance on RDDT stock, giving a Buy rating yesterday.
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Ronald Josey has given his Buy rating due to a combination of factors that highlight Reddit Inc’s potential for growth and monetization. One of the primary reasons is the anticipated positive performance in the upcoming 2Q25 earnings, which are expected to surpass consensus expectations. This optimism is driven by Reddit’s strategic focus on daily active user trends and the stabilization of traffic growth, particularly following recent changes in Google’s algorithm.
Additionally, Josey points to Reddit’s ongoing product and monetization journey, emphasizing the launch of new products such as Reddit Answers, Dynamic Product Ads, and Community Intelligence. These innovations are expected to enhance user engagement and provide valuable insights for advertisers, leveraging Reddit’s extensive data corpus. Furthermore, despite projected expense growth, the significant increase in revenue and operating leverage suggests a strong financial outlook, supporting the Buy rating.
Josey covers the Communication Services sector, focusing on stocks such as Alphabet Class A, Meta Platforms, and Pinterest. According to TipRanks, Josey has an average return of 25.8% and a 63.71% success rate on recommended stocks.
In another report released yesterday, Citizens JMP also reiterated a Buy rating on the stock with a $180.00 price target.