Reddit price target raised to $65 from $50 at Bernstein

Bernstein raised the firm’s price target on Reddit (RDDT) to $65 from $50 and keeps an Underperform rating on the shares. The firm notes checks on Reddit were positive, with impressive ROAS at current CPM. Comments on weaker ad agency signal in the second half of the year shared during Q2 earnings has since improved from August, Bernstein adds. Management guided Q3 revenues to $290M-$310M, which the firm believes is conservative when isolating for ramped data licensing deals, it points to a 30-35% year-over-year ad revenue growth rate. Longer term, the case to own Reddit as a quality, multi-year compounder is much more unclear, with the near-term tactical case likely fully priced in, Bernstein says.