Analyst Ken Gawrelski from Wells Fargo maintained a Buy rating on Reddit Inc Class A (RDDT – Research Report) and increased the price target to $215.00 from $206.00.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
Ken Gawrelski has given his Buy rating due to a combination of factors that highlight Reddit Inc’s potential for recovery and growth. Despite recent disruptions in user growth attributed to search traffic changes, the company has shown resilience with a strong acceleration in advertising revenues, surpassing expectations. Gawrelski notes that the management’s explanation of temporary user disruption is plausible and anticipates a return to normalized growth in the upcoming quarters.
Moreover, Reddit Inc’s strategic focus on leveraging its data through first-party products and an optimistic outlook on advertising growth contribute to the Buy rating. The company’s ability to manage costs effectively, alongside planned investments in engineering and ad sales, is expected to support sustained growth. Gawrelski has adjusted revenue estimates upwards for the coming years, reflecting confidence in the company’s continued improvement and potential for value capture in the advertising market.
Gawrelski covers the Communication Services sector, focusing on stocks such as Alphabet Class A, Meta Platforms, and Roblox. According to TipRanks, Gawrelski has an average return of 15.4% and a 69.17% success rate on recommended stocks.
In another report released today, Morgan Stanley also upgraded the stock to a Buy with a $210.00 price target.