Shares of Reddit (RDDT) experienced a nearly 3% increase in premarket trading, reaching approximately $201. This uptick follows a new price target announced by Raymond James, which raised its target for Reddit from $225 to $250.
Raymond James Raises Price Target for Reddit
The increase in price target implies a potential upside of 28.2% based on the stock’s last close price. According to Raymond James, the brokerage has become more optimistic about Reddit’s Average Revenue Per User (ARPU) opportunity after conducting recent advertising checks.
Q3 2025 Revenue Outlook
Raymond James forecasts a revenue upside scenario for the third quarter of 2025. They estimate that Reddit could exceed revenue expectations by $50 million to $60 million, with anticipated revenue of around $544 million.
Brokerage Ratings Overview
In terms of brokerage ratings, 19 out of 28 firms have rated Reddit’s stock as “buy” or better. Eight brokerages have issued a “hold” rating, while one maintains a “sell” recommendation. The median price target across these brokerages stands at $232.50.
Year-to-Date Performance
- Shares of Reddit are up approximately 19.3% year-to-date (YTD).
- Price increases driven by positive sentiment from analysts.
The boost in share price and optimistic assessments from analysts indicate a growing confidence in Reddit’s potential for future growth and profitability.
