Reddit (RDDT) PT Raised to $300 at Needham

Needham analyst Laura Martin raised the price target on Reddit (NYSE: RDDT) to $300.00 (from $215.00) while maintaining a Buy rating.

The analyst comments "We raise our FY25 and FY26 estimates, and our PT, owing to GenAI and rising labor productivity. We believe RDDT benefits from GenAI in 3 ways: RDDT is a key beneficiary of Google's search engine giving answers instead of links to publishers in the open web, because now high-quality publishers are approaching RDDT and asking to be included in RDDT's search results to replace their lost traffic from GOOGL; RDDT is using GenAI to automate translations offshore to build its offshore communities faster, because a critical mass of participants is a pre-requisite to generating local ad revs in each country; RDDT is in discussions with OpenAI and Gemini/GOOGL to renew agreements with more value for RDDT, not just fees for data."

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