Reddit Stock Target Boosted as Catalysts Approach

Reddit's stock (NYSE: RDDT) is trading 2.8% higher this pre-market, having fallen 3.6% during yesterday's regular trading session. This morning has seen a boost in optimism on Wall St, marked by a series of upward revisions to its stock price targets.

Truist has just increased its price target on Reddit to $260 from $225, reiterating a “Buy” rating. Truist's rationale centers on several near- to mid-term catalysts expected to propel growth. These include anticipated strong Q3 results and optimistic Q4 guidance, suggesting the company is on track to exceed expectations.

The upcoming launch of a unified search and answers product is also seen as a key driver, enhancing user engagement and potentially boosting advertising revenue.

Furthermore, Reddit's ongoing international expansion efforts, the development of lower-funnel ad products tailored for shopping campaigns, the introduction of automation and B2B tools for advertisers, and the establishment of direct partnerships with publishers are all contributing factors to the bullish outlook. Increased traffic stemming from data licensing partnerships further strengthens the revenue diversification strategy. Truist analysts have also introduced FY26 quarterly estimates, indicating a long-term positive trajectory for the company's financial performance.

Echoing Truist's sentiment, Piper Sandler reiterated an “Overweight” rating, raising its price target from $210 to $290. This adjustment reflects improved sentiment following company meetings and checks, suggesting a deeper understanding of Reddit's operational strategies and market positioning.

Citizens JMP also joined the chorus of positive revisions, maintaining an “Outperform” rating and boosting the price target from $225 to $300. Their analysis highlights Reddit's robust growth strategy, the strength of its advertising business, and the significant potential of its data licensing agreements.

Price Targets

The anticipation of strong Q3 results will provide further insights into whether Reddit's strategic initiatives are translating into tangible financial gains. The successful implementation of its new search and advertising tools will be critical in driving revenue growth and attracting advertisers. The company's ability to capitalize on its data licensing opportunities and expand its international footprint will also be key factors in determining its long-term success.