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KeyBanc bullish on Reddit, sees a "durable compounder" in AI-linked growth
['Sam Boughedda', 'Min Read']
Yahoo Finance - Business Finance, Stock Market, Quotes, News
Investing.com -- KeyBanc Capital Markets initiated coverage of Reddit with an Overweight rating and a $225 price target in a note on Wednesday, casting the platform as a durable growth story with a unique tie to artificial intelligence.
Analyst Justin Patterson said Reddit's investments in community and ad monetization should create "a durable >30% annual revenue growth business with a path to 50% EBITDA margin."
KeyBanc projects a 35% revenue compound annual growth rate from 2025 to 2028, with EBITDA compounding at 48% annually.
It models revenue of $3.24 billion, $4.30 billion and $5.46 billion across 2026 to 2028, running slightly ahead of consensus and more meaningfully above in 2028.
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