Piper Sandler reiterated its Overweight rating on Reddit Inc. with a price target of $290.00, suggesting a 34% upside from its current trading price. The investment firm highlighted the significant potential of Reddit's data licensing business as a key driver for future growth, viewing the company as a strategic asset in the artificial intelligence sector due to the high demand for training data. The firm projects that revenue from data licensing could reach approximately $400 million by 2027, an amount that substantially exceeds prior consensus estimates. Piper Sandler also expressed optimism regarding Reddit's advertising business, forecasting differentiated growth compared to peers.
Piper Sandler Reiterates 'Overweight' on Reddit, Citing AI Data Licensing Upside