Core Viewpoint - Reddit, Inc. is being closely monitored by analysts as a promising AI stock, with Truist Securities maintaining a "Buy" rating and a price target of $270.00, driven by expectations of improved engagement, ad efficiency, and margin expansion [1]. Group 1: Analyst Insights - Truist Securities conducted an investor group call with Reddit, focusing on key issues impacting the company's near to medium-term outlook [2]. - Key issues discussed include the potential for Daily Active User (DAU) re-acceleration and increased user engagement due to a new onboarding process and enhanced AI search experience expected in FY26 [3]. - The firm anticipates sustained revenue growth through improved ad monetization via end-to-end automation tools, and progress towards a 50% AEBITDA margin, having already achieved a 40% target margin ahead of schedule in Q3 2025 [3]. Group 2: Company Overview - Reddit, Inc. is a social media platform utilizing AI to enhance search functionality and user engagement [4].
Truist Doubles Down on Reddit (RDDT): $270 Target and Big AI-Driven Upside