Reddit price target raised to $120 from $70 at Citi

Citi analyst Ronald Josey raised the firm’s price target on Reddit (RDDT) to $120 from $70 and keeps a Buy rating on the shares. The company reported “impressive” Q3 results with revenue coming in 11% above consensus and EBITDA coming in 57% above the high-end of guidance, the analyst tells investors in a research note. Underscoring the results is Reddit’s continued user growth and engagement gains with daily active users reaching 97M, up 47% year-over-year led, in part, by greater conversations on the platform as well as from its machine translation initiatives globally, says Citi. The firm believes the trends can continue going forward as newer ad units launch and incremental surfaces – like search, video, and shopping – are monetized as Reddit’s operating leverage continues.