Reddit stock price target raised to $151 from $120 at Baird

Investing.com - Baird raised its price target on Reddit (NYSE:RDDT) to $151.00 from $120.00 on Tuesday, while maintaining a Neutral rating on the stock. The social media platform, currently trading at $153.37, has analyst targets ranging from $75 to $220, according to InvestingPro data.

The firm cited improving site traffic in June following Google-related issues that Baird first identified in early January. Baird indicated it remains comfortable with near-term estimates for the social media platform.

Baird’s data tracking showed strength in non-U.S. user activity, which has been supported by content translations. The firm also noted that domestic search activity appears healthy.

Early integration of shopping-related features, including dynamic product ads, is likely to ramp up in the fourth quarter, according to Baird’s analysis.

The price target increase reflects expanding sector multiples since Baird’s previous update, with the firm projecting long-term revenue and EBITDA compound annual growth rates of approximately 20% and 25%, respectively.

In other recent news, Reddit has reported a series of developments that could impact investor decisions. Wells Fargo (NYSE:WFC) has raised its price target for Reddit to $118, citing stabilizing advertising trends and increased revenue estimates. The firm projects Reddit’s Q2 2025 total revenue to reach $427 million, representing a 52% growth, and has revised its full-year advertising growth estimate upward to 45% year-over-year. Meanwhile, Loop Capital has lowered its price target to $200 due to concerns over moderating user growth, though it maintains a positive long-term outlook, projecting the platform could double its user base by 2029. Reddit has also launched AI-powered ad tools aimed at enhancing brand engagement, including "Reddit Insights" and "Conversation Summary Add-ons." Despite these advancements, Reddit’s user numbers have declined for the third consecutive month, with a 6 million user drop reported by Piper Sandler. Additionally, Reddit is undergoing a leadership change with the departure of Chief Product Officer Pali Bhat, as the company continues to focus on global expansion and product development. These recent developments highlight the dynamic nature of Reddit’s business environment.

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