Reddit rebounds after Seaport turns bullish

Reddit's RDDT.N shares up 3.8% at $118.21 on Mon after Seaport Research upgrades social media platform to 'buy' from 'neutral'

Seaport sets PT at $165, implying 45% upside to stock's last close

While user growth is slowing near term, RDDT continues to demonstrate strong rev growth even in the face of a softer macro environment, largely driven by advertising, Seaport said in note to clients

RDDT late Thurs forecasted Q2 rev of $410-$430 mln, topping Wall Street's expectations, but its stock finished down ~4% on Fri after CEO warned Google search to disrupt daily active users

Seaport said it remains positive on long-term fundamentals, pointing to expected user growth momentum, particularly internationally, and significant advertising monetization opportunity ahead globally

Now, of 24 brokerages covering RDDT, recommendation breakdown is 17 "strong buy" or "buy", 6 "hold" and 1"sell" rating, LSEG data shows

M edian PT of $160 down from $197.50 a month ago and from $190 on Feb 5

With move on Mon, stock down 28% YTD

The microblogging platform behind the popular WallStreetBets forum, went public in Mar 2024 in IPO priced at $34