Analysts at Jefferies and JMP Securities have raised their price targets for Reddit stock, reflecting strong growth potential in advertising revenues as the company continues to monetize its platform.
Jefferies analyst John Colantuoni emphasized that Reddit is in the early stages of monetization, suggesting a potential for substantial advertising revenue growth based on trends seen with peers like Pinterest and Snap.
Colantuoni cited that similar companies saw around 50% compound annual revenue growth in subsequent years, which implies nearly 35% upside for Reddit's consensus estimates up to 2026 if similar growth is achieved.
JMP Securities' Andrew Boone raised his price target and expressed confidence in Reddit's operational momentum, highlighting the platform's capacity to sustain growth even as user growth rates may decelerate.
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