- Major Analyst Upgrade: Investment firm Raymond James boosted its price target on Reddit (RDDT) stock from $225 to $250, citing growing confidence in the company’s revenue potential.
- Significant Upside Potential: The new $250 target represents a substantial 28.2% potential increase from the stock’s last closing price, signaling strong conviction from the brokerage.
- Bullish Wall Street Consensus: A solid majority of analysts covering Reddit are optimistic, with 19 out of 28 rating the stock as a “buy” or higher.
- Positive Premarket Movement: Following the news, shares of the social media platform climbed nearly 3% in premarket trading, reflecting immediate investor enthusiasm.
Reddit’s Momentum Continues with Bullish Analyst Call
Shares of social media giant Reddit (NYSE: RDDT) are on the rise after receiving a significant vote of confidence from Wall Street. Investment firm Raymond James upgraded its outlook on the company, increasing its price target and fueling investor optimism about the platform’s future profitability.
The Upgraded Forecast
Raymond James lifted its price target for Reddit to $250, a notable increase from its previous target of $225. This new forecast suggests a potential 28.2% upside for investors from the stock’s last closing price.
The brokerage’s positive revision is rooted in a more bullish view of Reddit’s Average Revenue Per User (ARPU). In a note to clients, the firm stated, “We walk away from recent ad checks incrementally more bullish on the Average Revenue Per User (ARPU) opportunity and thus raise our 2026 estimates and target price.” This indicates a growing belief that Reddit is becoming more effective at monetizing its massive user base through advertising.
Future Revenue Expectations
Looking ahead, Raymond James sees the potential for a significant revenue beat in the coming year. The brokerage highlighted a possible upside scenario for the third quarter of 2025, where revenue could outperform current estimates of $544 million by an additional $50 million to $60 million. This demonstrates a strong conviction that Reddit’s financial performance will exceed market expectations.
Broad Wall Street Support
The optimism from Raymond James aligns with a wider consensus among market analysts. According to data compiled by LSEG:
- 19 of 28 brokerages rate Reddit stock as a “buy” or higher.
- 8 analysts recommend a “hold.”
- Only 1 analyst has issued a “sell” rating.
The median price target among all these analysts stands at $232.50, further confirming the generally positive sentiment surrounding the stock. This social proof from a majority of financial experts provides a strong tailwind for the company’s shares.
Reddit’s stock has already delivered strong returns for investors this year, with shares up approximately 19.3% year-to-date as of the last market close. This latest analyst upgrade adds another layer of validation to the company’s growth story following its much-anticipated IPO.
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