Analyst John Colantuoni of Jefferies reiterated a Buy rating on Reddit Inc Class A (RDDT – Research Report), retaining the price target of $225.00.
John Colantuoni has given his Buy rating due to a combination of factors that highlight Reddit Inc’s potential for growth and profitability. One of the key reasons is Reddit’s unique user engagement, which creates an interest graph that enhances ad targeting capabilities, setting it apart from other social platforms. This is complemented by a strong pipeline of new products that are expected to expand advertising opportunities and increase monetization, particularly with the introduction of new ad formats in 2025.
Additionally, Reddit shows resilience against macroeconomic pressures, continuing to gain advertiser interest and wallet share without signs of slowing down. The company’s focus on developing AI-powered products internally may limit new data partnerships but also positions Reddit for future innovation. Furthermore, Reddit’s disciplined cost management is expected to drive significant EBITDA growth, with the potential to exceed long-term margin targets, supported by a strong gross margin and incremental margin expectations.
Colantuoni covers the Consumer Cyclical sector, focusing on stocks such as eBay, Airbnb, and Expedia. According to TipRanks, Colantuoni has an average return of 8.3% and a 61.83% success rate on recommended stocks.
In another report released on March 12, Raymond James also maintained a Buy rating on the stock with a $200.00 price target.
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