BUZZ-Reddit gains, Jefferies initiates coverage with 'buy' rating

Reuters10-09

** Shares of social media firm Reddit rise 3% to $72.88 premarket

** Jefferies initiates with "buy" rating and $90 target price

** RDDT is combining AI-driven product enhancements with a robust archive of contextual content to spur trial and engagement, resulting in recent user growth accelerating to the highest level in 2+ years - Jefferies

** RDDT's deeper integration into Google search spurring user growth - brokerage

** Brokerage anticipates additional high-margin data licensing deals

** EBITDA to more than double in the next 2 yrs to ~$450 mln and 12% above 2026 consensus - Jefferies

** Separately, Needham raises PT to $85 from $75

** Earlier in the week, J.P. Morgan raised PT to $77 from $59

** 11 out of 17 brokerages rate the stock "buy" or higher, 5 rate "hold", 1 "strong sell"; median PT is $70 - LSEG data

** Shares up 50.6% since March IPO through yesterday's close

(Reporting by Sukriti Gupta)

((Sukriti.Gupta@thomsonreuters.com;))

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