Deutsche Bank analyst Benjamin Black initiated coverage of Reddit with a Buy rating and $50 price target. The analyst thinks Reddit is on the early end of a number of positive inflections, saying its top-of-funnel growth is accelerating, the advertising platform is in the early stages of being built to address lower funnel objectives, and the data licensing business is in the very early stages of growth. It believes the company has an accelerative user growth profile, upside potential from ad technology and best-in-class margin expansion potential off a low base.
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