Reddit Analysts Increase Their Forecasts After Strong Earnings

Reddit Inc RDDT reported better-than-expected fourth-quarter financial results after the market close on Wednesday.

Reddit reported fourth-quarter revenue of $427.71 million. It beat the consensus estimate of $405.26 million, according to Benzinga Pro. Fourth-quarter earnings of 36 cents per share, topped analyst estimates of 25 cents per share.

“It was another strong quarter as we accomplished exciting milestones across revenue and international growth,” said Steve Huffman, Co-Founder and CEO of Reddit. “However, what’s most exciting is still ahead. We’re focused on providing a best-in-class experience for finding community and trusted information, proving that Reddit is for everyone, everywhere.”

Reddit expects first-quarter revenue to be in the range of $360 million to $370 million versus estimates of $358.08 million. The company sees first-quarter adjusted EBITDA of $80 million to $90 million.

Reddit shares gained 1.3% to close at $216.47 on Wednesday.

These analysts made changes to their price targets on Reddit following earnings announcement.

• Morgan Stanley analyst Brian Nowak maintained Reddit with an Overweight and raised the price target from $200 to $210.
• Baird analyst Colin Sebastian maintained the stock with a Neutral and raised the price target from $160 to $185.
• Needham analyst Laura Martin maintained Reddit with a Buy and raised the price target from $190 to $220.
• B of A Securities analyst Justin Post maintained Reddit with a Neutral and raised the price target from $180 to $190.

Considering buying RDDT stock? Here’s what analysts think:

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