Piper Sandler has revised its price target for Reddit (RDDT, Financial), reducing it from $220 to $140, while maintaining an Overweight rating on the stock. This adjustment reflects changes in their outlook following the impact of Google's Core update in December.
In the first quarter, Piper Sandler highlights the significance of Reddit's daily average users (DAUs) as a critical metric. The firm projects that DAUs will reach 108 million, marking a 6.5 million increase from the previous quarter. This user growth is expected to contribute to a forecasted $369 million in revenue and an EBITDA of $89.8 million for the quarter.
Looking further ahead, Piper Sandler has also adjusted its revenue projections for 2025 and 2026, lowering them by 4% and 7%, respectively. These adjustments suggest a more cautious outlook on Reddit's future financial performance.
