Reddit price target raised at JMP Securities, would use pullback to buy shares

JMP Securities raised the firm’s price target on Reddit (RDDT) to $200 from $190 and keeps an Outperform rating on the shares. Reddit reported better-than-expected Q4 results, with Daily Active Uniques 2% above consensus and revenue 5% above consensus, though the revenue beat tightened and U.S. DAUq declined quarter over quarter, driven by volatility in Google SEO, the analyst tells investors in a research note. The firm says ad monetization has been an area of strength as performance advertising represents 60% of Q4 advertising revenue, while search remains a significant opportunity that is likely increasingly realized over the next 18 months. JMP recommends using any pullback as an opportunity to buy shares.