Top Wall St brokerages start Reddit coverage with doubts over user growth

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Top Wall Street brokerages, including Goldman Sachs, J.P.Morgan, and Morgan Stanley, have started coverage of Reddit with doubts over its user growth. Goldman Sachs and J.P.Morgan gave a 'neutral' rating with price targets of $40 and $47, respectively, while Morgan Stanley had an 'equal-weight' rating with a $45 price target. Reddit shares were last trading at $40.66. J.P.Morgan analysts estimate that Reddit's daily active unique users (DAUq) will reach 109 million by 2026, but this lags behind peers like Facebook and Elon Musk's X. The brokerages are bullish on Reddit's ad revenue and its use of artificial intelligence (AI) but believe the company needs to prove it can scale over time. Deutsche Bank, Raymond James, Needham, Piper Sandler, and Roth MKM were the most bullish on the stock, with Needham having the highest price target of $55. Reddit's popularity surged during the 'meme-stock' saga of 2021, but concerns have been raised about the company's profitability.

#Reddit #WallStreet #Brokerages #UserGrowth #AdRevenue #ArtificialIntelligence

https://finance.yahoo.com/news/wall-street-brokerages-start-reddit-113850943.html