Key Highlights
- Firm analysts believe RDDT has more room to turn its user engagement into revenue.
- Analysts anticipate a three-year revenue compound annual growth rate of 30%-40%, driven by Reddit’s development of new features and more advanced ad products.
- This positions the company among the strongest growth profiles in the sector.
- “Our Stock Call: We are initiating coverage of Reddit (RDDT) with an Outperform rating & a $320 price target (30% upside), based on 35x ’27E EBITDA of $1.8B.
- We view valuation (39x ’26 EBITDA) as very robust but reasonable, given our outlook for a 3-year Revenue CAGR of 30–40% & EBITDA CAGR of 40–50%, one of the strongest growth profiles in our sector.