Reddit, Inc. (NYSE:RDDT) is one of the On June 2, Citizens analyst Andrew Boone reiterated a Market Outperform rating on Reddit, Inc. (NYSE:RDDT) with a $240.00 price target.
Boone has particularly defended Reddit’s premium valuation, stating how the company boasts major drivers driving near-term outperformance
Reddit last closed at $177.85, which implies shares trade for 16.5x our 2027E EBITDA of $2.0B and 25.4x our 2027E GAAP EPS of $7.01. We maintain our Market Outperform rating. Our $240 price target is based on ~34x our 2027E GAAP EPS of $7.01.
From its significant ad momentum to new product launches such as Reddit Shopping and Max, many factors justify the stock’s valuation. The firm also noted how Reddit Answers, an AI-powered search tool on Reddit, has been modernizing the search experience for its users. one photo/ The firm believes that Reddit will continue to materially outperform estimates near-term. Reddit, Inc. (NYSE:RDDT) is a social media platform that leverages AI to strengthen search functionality and improve user engagement.