Reddit Inc Class A, the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst Ronald Josey from Citi reiterated a Buy rating on the stock and has a $250.00 price target.
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Ronald Josey has given his Buy rating due to a combination of factors that highlight Reddit’s strategic growth initiatives and potential for increased profitability. Despite a recent decline in Reddit’s stock price, Josey remains optimistic about the company’s product-led growth strategy, which is expected to drive long-term daily active user growth and average revenue per user. The planned redesign of Reddit’s app and website, which includes a more personalized user interface and enhanced search capabilities, is anticipated to reignite user growth and engagement.
Additionally, Josey points to Reddit’s strong monetization momentum, particularly through new advertising products and automation, as well as strategic data licensing partnerships that are likely to become more valuable. The company’s ability to balance investments while maintaining operational leverage is another positive factor. With these elements in mind, Josey has increased the target price for Reddit’s stock by 14% to $250, reflecting his confidence in the company’s future performance.
Josey covers the Communication Services sector, focusing on stocks such as Alphabet Class A, Meta Platforms, and Zillow Group Class A. According to TipRanks, Josey has an average return of 23.8% and a 58.88% success rate on recommended stocks.
In another report released on October 17, Jefferies also maintained a Buy rating on the stock with a $200.76 price target.