Reddit price target raised to $75 from $63 at Needham

Needham raised the firm’s price target on Reddit to $75 from $63 and keeps a Buy rating on the shares. The firm also maintains its Conviction List designation on the stock while boosting its FY24 EPS view by 20c to 82c and its FY25 view by 45c to $1.20. Reddit’s core advertising fundamentals and user adds are exceeding the firm’s prior estimates, and its operating costs are growing more slowly than its prior estimates, the analyst tells investors in a research note. Needham adds that its projected data licensing revenue has nearly doubled since its initiation report, thanks to the company’s new 3-year deal with OpenAI, which should add to Reddit revenue and free cash flow beginning in Q3 of this year.