Citizens maintained its Market Outperform rating and $300 price target for Reddit, representing a potential upside of over 115%. The firm highlighted accelerating momentum with advertising revenue projected to grow 75% year-over-year in Q4 2025, up from 61% the previous year.
- Future growth is supported by several catalysts, including the expansion of Reddit Answers, increased Reddit Max adoption, and the maturation of shopping advertisements.
- Despite a 54 P/E ratio, the firm noted an attractive 0.28 PEG ratio, suggesting the stock remains undervalued relative to its 69.4% overall revenue growth.
- Reddit shares rose +1.26% to $140.99 in pre-market trading following the positive analyst commentary.