Reddit price target raised to $87 from $75 at B. Riley

B. Riley raised the firm’s price target on Reddit (RDDT) to $87 from $75 and keeps a Buy rating on the shares ahead of the Q3 earnings report on October 29. The company’s sales growth is likely to be driven in by continued strong growth in daily active users as well as an increase in licensing revenue, while leverage in spending should drive faster growth in EBITDA and margin expansion, the analyst tells investors in a research note. The firm says Reddit’s commentary on platform improvements, trends in performance indicators, and its pipeline for content licensing deals will be key for stock in the near term. It cites prospects for higher profitability over the medium to longer term for the target increase.