Reddit's Rising Momentum Sparks Price Target Boost to $200 at Citi

Citi analysts raised Reddit (NYSE:RDDT) price target to $200, up from $120, while maintaining a Buy rating, citing strong advertiser interest, increasing user engagement, and promising new product launches. Reddit’s continued growth in user activity and its expanding suite of tools for advertisers are driving optimism about its long-term potential.

The platform has seen notable engagement growth, bolstered by heightened awareness and the introduction of new features such as Reddit Answers. These developments create multiple catalysts to further increase user interaction. On the monetization front, discussions with advertisers indicate growing interest in Reddit’s vast user base, with demand expected to rise as the company rolls out additional ad offerings, including Search Ads, Video Ads, Dynamic Product Ads, and a planned end-to-end campaign automation system.

While Reddit’s EBITDA projections have been significantly revised upward, the company is heavily investing in key areas such as sales, AI, machine learning, search capabilities, and engineering talent. These strategic investments position Reddit to capture even greater market share in the competitive digital advertising landscape.

With its robust growth trajectory and expanding monetization opportunities, Reddit remains one of Citi’s top mid-cap picks for 2025, reinforcing its potential as a standout player in the social media and advertising space.