Reddit price target raised by $35 at Piper Sandler, here's why - InvestingChannel

Reddit price target raised by $35 at Piper Sandler, here’s why

Piper Sandler analyst Thomas Champion raised the firm’s price target on Reddit to $150 from $115 and keeps an Overweight rating on the shares. The firm says its October ad metrics indicate Google is starting to monetize searches with “Reddit” in the title by posting paid links and products ads above organic results. The firm’s data has not seen an impact to Reddit users or pricing based on these changes. While debate remains on the sustainability of user growth, the ad data gives Piper more confidence in the organic top of funnel for Reddit growth, the analyst tells investors in a research note. Piper increased Reddit’s fiscal 2025 revenue and EBITDA estimates by 5% and 15%, respectively. It sees the company achieving a more robust monetization opportunity with average revenue per user growth of 9% achievable in 2025 and 2026, versus 7% previously.

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