Reddit analysts weigh in after quiet period ends
Most Wall Street analysts observe a 25-day quiet period following an IPO before issuing ratings. Now that the appropriate time has passed, several analysts have initiated coverage of the social media platform.
Roth MKM analyst Rohit Kulkarni initiated coverage of Reddit with a buy rating and a $50 price target.
In a research note to institutional investors, Kulkarni noted Reddit's status as the "front page of the Internet."
The analyst said the company's large, unique, and fresh corpus of user-generated text content is now increasingly valuable to artificial intelligence models.
Kulkarni said he believed in the company's ability to execute.
Needham initiated coverage of Reddit with a buy rating and a $55 price target.
The investment firm says Reddit's library of 18 years of human conversations, updated daily, is increasingly valuable for training large language models and for "social listening" for brands.
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