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Reddit ‘extremely attractive’ after 50% stock price decline, says Loop Capital

Reddit ‘extremely attractive’ after 50% stock price decline, says Loop Capital

Loop Capital keeps a Buy rating and $210 price target on Reddit (RDDT) while noting that after an “excessive” 50% decline in one month, the stock is “extremely attractive”. The company’s growth in ARPU should be driven by better ad tools, eventually a product matching Meta‘s (META) Advantage+, advertising on more surfaces including a larger ad load on the comments page and potentially search advertising, and the auction dynamics from bringing more advertisers onto the platform, the analyst tells investors in a research note. Loop adds it is projecting a 36% revenue growth and 87% EBITDA growth this year.

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