Deutsche Bank Reiterates Buy Rating on Reddit (RDDT)

Deutsche Bank analyst Ben Black reiterated a Buy rating and $65.00 price target on Reddit (NYSE: RDDT).

The analyst comments "We think there is a misperception that Reddit’s user growth story is solely tied to Google‘s recent search algorithm changes. Rather, we now have a better appreciation that the company’s investments in faster-loading page technology (Shreddit) has resulted in better placement on search results, which is clearly a sustainable trend going forward. While the recent algorithm changes have indeed had a positive impact, this accounted for a substantial minority of the recent positive user trends. Beyond that, there appears to be a secular trend of growing demand for authentic, human-created content, particularly given the proliferation of AI-generated content, which should further serve to support Reddit‘s top-of-funnel strength."

For an analyst ratings summary and ratings history on Reddit click here. For more ratings news on Reddit click here.

Shares of Reddit closed at $57.30 yesterday.

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