Reddit Initiates Coverage with $200 Target

D.A. Davidson analyst Wyatt Swanson initiates Reddit coverage, assigns Buy rating and $200 price target.
Reddit shares have fallen ~28% YTD amid slowing user growth, AI firm negotiations, and macro uncertainty.
Swanson cites under‑monetization, AI data advantage, and expects Q1 DAU to beat consensus by ~1.3%, with strong April Y/Y traffic.
Pending AI licensing renewals could fetch 15‑30% higher rates; legal suit vs Anthropic may settle, boosting 2026‑27 revenue and EBITDA.