Reddit Inc (NYSE: RDDT) is already up close to 40% versus its year-to-date low but analysts at Citi are convinced that it’s not out of juice just yet.
Reddit stock could climb another 20%The investment firm reiterated its “buy” rating on the social news aggregator this morning and raised its price target to $65 which suggests another 20% upside from here.
Citi remains bullish on Reddit stock after the quarterly earnings report the social media company posted last night. Analysts at the financial services behemoth told clients today:
As Reddit builds out its ad stack, we look for Search (1B+ monthly queries) and video monetisation to potentially begin in 2024, creating a medium-term catalyst for growth.
Despite the surge on Wednesday, $RDDT is down 15% versus its year-to-date high.
Watch here: https://www.youtube.com/embed/O66gExd9mWc?feature=oembedReddit smashed estimates in its fiscal Q1Reddit Inc saw its revenue grow by 48% on a year-over-year basis to $243 million (well above expectations) in its fiscal first quarter.
Citi is positive on the New York listed firm because it issued impressive guidance for its current financial quarter as well. According to CEO Steve Huffman:
We see this as the beginning of a new chapter as we work towards building the next generation of $RDDT.
The $8.0 billion company based out of San Francisco, California will improve its market share in advertising as engagement trends continue to improve moving forward, Citi analysts added in their research note on Wednesday.
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