Shares of social media company Reddit (RDDT) are up 7% and trading at an all-time high after analysts at Raymond James Financial (RJF) raised their price target and reiterated a “strong buy” rating on the stock.
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RDDT stock reached a record intraday high of $191, besting a previous high of $182 on Jan. 6 of this year. Reddit shares only surpassed $100 for the first time last Halloween after the company reported third-quarter financial results that topped Wall Street’s consensus forecasts.
Now, Raymond James has sent RDDT stock higher with a note to clients that raises the price target on the shares to $200 from $150 and a reiterates a “strong buy” rating. The analysts at Raymond James say they have “conviction” that Reddit will expand its business internationally in the year ahead.
AI Technology
Reddit’s management team has said that they are looking to expand outside the U.S. as they grow their online advertising business. To that end, Reddit, which runs online message boards such as WallStreetBets, is using artificial intelligence (AI) to automatically translate its site text to different languages such as French and Spanish.
Raymond James says the AI-translation is key to the company’s international expansion. At the same time, Reddit continues to be one of the top five most searched websites in the U.S., according to research firm SimilarWeb. RDDT stock has gained 308% in the last 12 months.
Is RDDT Stock a Buy?
Reddit stock has a consensus Moderate Buy rating among 17 Wall Street analysts. That rating is based on 12 Buy, four Hold, and one Sell recommendations issued in the last three months. The average RDDT price target of $167.59 implies 11.14% downside risk from current levels.
