Phillip Securities Research initiated coverage on Reddit Inc. (RDDT) with a 'BUY' rating. The firm set a price target of $280.
The positive outlook stems from Reddit’s potential to monetize its community-driven conversations. Key drivers include data licensing for AI and an expanding advertising business. Phillip Securities highlights the shift toward recurring, usage-based data monetization and the development of AI-driven ad tools.
The research note provides specific fiscal year 2025 forecasts. Analysts project a 66% year-over-year growth in Reddit's ad revenue. 'Other' revenue, which includes data-licensing, is expected to increase by 55%.
This new rating follows a volatile week for Reddit's stock and provides a bullish long-term perspective. No immediate market reaction to the specific analyst rating was available.