Evercore ISI initiated coverage of Reddit (RDDT) on January 13, 2026, assigning an 'Outperform' rating and setting a price target of $320.00. This target suggests a potential upside of approximately 30% from the previous closing price of $244.02.
The firm cited Reddit’s strong growth prospects as the basis for the rating. Evercore forecasts a three-year revenue compound annual growth rate (CAGR) between 30% and 40%.
The positive outlook stems from the belief that Reddit has a significant opportunity to increase its average revenue per user (ARPU). Evercore supports this view by citing recent product launches and industry comparisons. The firm’s 2027 estimates for both revenue and EBITDA stand 4% higher than the current market consensus.