A Morgan Stanley analyst has upgraded his view on Reddit, citing the company’s promising pipeline of engagement and advertising initiatives. Analyst Brian Nowak raised his price target to $200, which represents a 23% upside from Friday’s close. The new target builds on the stock’s 400% surge since its listing in March.
The upgrade comes after Reddit reported better-than-expected results and forecasts in October, with shares rising 81% as investors became more confident in the company’s ability to grow users and advertising revenue. Nowak acknowledged that the company still has early days ahead in terms of scaling its platform and increasing user engagement.
Despite missing out on gains since Reddit’s initial public offering (IPO), Nowak believes there’s still time to jump aboard the stock. He reiterated his overweight recommendation, aligning with the majority of peers. The company’s shares closed at $167.17 on Monday, a fresh record.
Source: https://finance.yahoo.com/news/party-morgan-stanley-analyst-jumps-113939323.html