Reddit price target raised to $200 from $120 at Citi

Citi analyst Ronald Josey raised the firm’s price target on Reddit (RDDT) to $200 from $120 and keeps a Buy rating on the shares. The firm increased estimates to reflect advertiser checks, Reddit’s continued engagement strength, and newer product launches such as Reddit Answers. Citi has been “impressed” with Reddit’s continued engagement gains as awareness grows and newer products launch which it believes “create multiple catalysts for increased engagement.” The firm’s conversations with advertisers suggest growing demand given Reddit’s user scale and it believes there are “multiple avenues” for incremental advertising spend as newer ad products like Search, Video, Dynamic Product Ads, and Reddit’s planned end-to-end campaign automation tools launch and gain scale.