B.Riley analysts initiated coverage on Reddit (NYSE:RDDT) with a Buy rating and a price target of $75 on the stock.

The analysts highlighted Reddit’s unique platform, which serves tens of millions of users across over 100,000 communities, offering a compelling value proposition for users, advertisers, and content licensees. They believe Reddit is still in the early stages of monetizing its platform through advertising and data licensing, positioning it for strong top-line growth and margin expansion in the years ahead.

With a valuation of approximately 31x 2025 estimated EBITDA, the analysts find the risk/reward profile attractive, citing Reddit’s potential for above-industry growth and leverage opportunities in the coming years.