Various analysts initiated coverage of Reddit (NYSE:RDDT) in notes this week, with the overall rating currently standing as a Buy.
Citi initiated Reddit with a Buy rating and $53 price target in its note, highlighting the social media company's accelerating user engagement. They also noted that monetization is building with data licensing optionality.
JPMorgan started Reddit at Neutral with a $47 price target. The investment bank said the company has a "compelling narrative," but a strong execution is required while the current valuation is healthy.
Loop Capital, which started RDDT with a Buy rating and $55 price target, said the social media platform "differentiates itself from the other social media companies with its layered content moderation."
Needham & Company assigned Reddit a Buy rating and a $55 price target. "We believe that RDDT's library of 18 years of human conversations, updated daily, is increasingly valuable for training large language models (LLMs) and for 'social listening' for brands," said the firm.
Reddit was also assigned a Buy rating at Deutsche Bank. The price target was set at $50 per share. "We think Reddit is on the early end of a number of positive inflections," said the firm.
Piper Sandler said Reddit is a unique platform that is scaling ads and AI revenue. The firm started the stock at Overweight with a $50 price target.
Morgan Stanley started Reddit at Equal Weight with a $45 price target. The bank said there is much to like, but currently, the stock is fairly valued.
JMP Securities states that Reddit is a young platform with multiple growth levers. They assigned the stock a Market Outperform rating and a $53 price target.
Roth MKM started RDDT at Buy with a $50 stock price target. The firm said the "front page of [the] internet deserves a premium valuation."
Finally, Goldman Sachs initiated Reddit with a Neutral rating and a $40 price target. However, the bank believes the engaged user base presents a long-term growth and margin opportunity.