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Investing.com - Citizens has reiterated its Market Outperform rating and $300.00 price target on Reddit (NYSE:RDDT), representing potential upside from the current price of $198.55. According to InvestingPro analysis, the company maintains impressive fundamentals with a 91% gross profit margin and 70% year-over-year revenue growth.
The research firm noted that Reddit’s global time spent declined year-over-year for the third consecutive quarter.
U.S. time spent on the platform dropped 7.5%, according to the Citizens analysis.
The firm indicated that comparison periods should become easier in upcoming quarters.
Citizens analysts are monitoring Reddit’s web traffic growth deceleration, specifically noting that September traffic figures were lower than August.
In other recent news, Reddit has been the focus of several analyst assessments regarding its advertising capabilities and user activity. Citizens Financial has maintained its Market Outperform rating and a $300 price target on Reddit, emphasizing the platform’s advertising effectiveness, particularly for products with long-consideration purchase paths. The firm also compared Reddit’s U.S. logged-in ad monetization to Meta’s, indicating potential for revenue growth as Reddit’s advertising tools develop. Meanwhile, RBC Capital has raised its price target for Reddit to $245 from $210, citing growth in ad load across social media platforms, with Reddit showing significant upward trends compared to its competitors. However, RBC Capital also noted concerns about declining user activity, maintaining a Sector Perform rating due to data showing a decrease in daily active users. Despite these concerns, Citizens analyst Andrew Boone reiterated his optimistic stance, maintaining the $300 price target and highlighting Reddit’s potential for strong ad revenue monetization. These developments reflect a mixed outlook on Reddit’s performance, with emphasis on its advertising potential amid challenges in user engagement.
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