BofA lowered the firm’s price target on Reddit (RDDT) to $175 from $205 and keeps a Neutral rating on the shares. The firm cites multiple compression in the broader market as well as shifting its valuation methodology to better reflect a more mature margin profile for its lowered target. Given the discretionary nature of online advertising spend, higher expected Reddit growth rates and a premium valuation to peers, the firm sees Reddit as one of the most macro sensitive stocks in its coverage group, the analyst added.
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