On Oct 31, major Wall Street analysts update their ratings for $Reddit (RDDT.US)$, with price targets ranging from $99 to $120.
Goldman Sachs analyst Eric Sheridan maintains with a hold rating, and adjusts the target price from $60 to $105.
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.
Furthermore, according to the comprehensive report, the opinions of $Reddit (RDDT.US)$'s main analysts recently are as follows:
The company's third-quarter performance exceeded expectations and was coupled with a robust forecast for the fourth quarter. Reddit is seeing advantages from structural enhancements as it effectively carries out its comprehensive strategy, which spans product development, user growth, and revenue generation.
The firm's price target adjustment for Reddit is set aside, focusing on the robust Q3 performance and the Q4 revenue and EBITDA forecast exceeding market expectations. Post-results, estimates have been adjusted to accommodate increased advertising revenue, though balanced by a slight dip in data revenues. The consistent strong performance in advertising is seen positively, but there's an implication that the current high valuation of the stock may cap its growth potential.
The company's quarterly results were notably strong, with revenue exceeding consensus forecasts by 11% and EBITDA surpassing the high-end of guidance by 57%. The impressive financial performance is underpinned by sustained growth in user numbers and increased engagement, with daily active users growing by 47% compared to the same period last year. This growth has been partly fueled by heightened platform interaction and the implementation of machine translation on a global scale. The expectation is that these positive trends will persist as the company introduces new advertising formats and begins monetizing additional features such as search, video, and shopping, thereby improving operating leverage.
Reddit reported a more significant outperformance this quarter than in its first complete quarter as a public entity and notably achieved GAAP earnings positivity in the period. This performance was propelled by a 56% increase in advertising revenues. Reddit is considered to still be at a preliminary stage of enhancing user growth and escalating monetization efforts.
Here are the latest investment ratings and price targets for $Reddit (RDDT.US)$ from 11 analysts:
Note:
TipRanks, an independent third party, provides analysis data from financial analysts and calculates the Average Returns and Success Rates of the analysts' recommendations. The information presented is not an investment recommendation and is intended for informational purposes only.
Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
TipRanks provides a ranking of each analyst up to 5 stars, which is representative of all recommendations from the analyst. An analyst's past performance is evaluated on a scale of 1 to 5 stars, with more stars indicating better performance. The star level is determined by his/her total success rate and average return.
