Truist Securities lowered its price target on Reddit (NYSE: RDDT) to $260 from $275, while reiterating a Buy rating.
The firm said it remained optimistic ahead of the company’s first-quarter 2026 earnings report expected in early May. In its preview, Truist outlined key areas of investor focus, including the trajectory of user growth and engagement following Google’s algorithm changes in March, as well as the potential impact of AI-driven disintermediation.
The analyst also highlighted ongoing debate around the durability of Reddit’s monetization improvements and the outlook for data licensing agreements, including renewals and new partnerships.
Truist described Reddit as one of the fastest-growing and most profitable advertising platforms within its coverage universe. The firm also noted the platform’s prominence as a major source of information referenced by large language models such as ChatGPT and Gemini.
With shares down approximately 40% year to date, Truist said it views the stock as an attractive opportunity.
