On Oct 30, major Wall Street analysts update their ratings for $Reddit (RDDT.US)$, with price targets ranging from $99 to $120.
J.P. Morgan analyst Doug Anmuth maintains with a hold rating, and adjusts the target price from $77 to $110.
BofA Securities analyst Justin Post maintains with a hold rating, and sets the target price at $99.
Citi analyst Ronald Josey maintains with a buy rating, and adjusts the target price from $70 to $120.
Jefferies analyst John Colantuoni maintains with a buy rating, and adjusts the target price from $100 to $120.
Loop Capital analyst Alan Gould maintains with a buy rating, and adjusts the target price from $80 to $120.
Furthermore, according to the comprehensive report, the opinions of $Reddit (RDDT.US)$'s main analysts recently are as follows:
Reddit's third-quarter performance surpassed expectations, and the company's fourth-quarter projections are robust. Structural enhancements are benefiting the company as it consistently executes its strategy, which spans product development, user engagement, and monetization efforts.
The firm has increased its estimates on Reddit following a robust Q3 performance and a Q4 forecast surpassing expectations. This adjustment accommodates an anticipated rise in advertising revenue, balanced by a slight dip in data revenue. The firm acknowledges the company's consistent strong ad business performance, yet notes that the current high valuation of the stock may imply limited potential for growth.
The company showcased robust third-quarter outcomes, with revenue surpassing consensus forecasts by 11% and EBITDA exceeding the top end of guidance by 57%. Highlighted within these results is the platform's sustained user base expansion and enhanced user engagement, with daily active users climbing to 97 million, marking a 47% increase on a year-over-year basis. This growth is partially credited to increased platform dialogue and the implementation of machine translation on a global scale. There is optimism that these trends will persist as the company introduces new advertising formats and begins to capitalize on additional features such as search, video, and shopping, thereby increasing the company's operating efficiency.
Reddit exhibited an even larger upside this quarter beyond its initial success post-IPO, achieving GAAP earnings positivity. This performance was propelled by a significant 56% increase in advertising revenue. The platform is still in the preliminary stages of enhancing user growth and advancing its monetization efforts.
Here are the latest investment ratings and price targets for $Reddit (RDDT.US)$ from 8 analysts:
Note:
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