Evercore ISI Raises Price Target on Reddit, Cites Strong Monetization Progress

Evercore ISI has turned bullish on Reddit Inc. (RDDT), upgrading its investment stance following a series of positive operational trends. The firm cited the company's expanding advertising ecosystem and growing engagement metrics as key drivers behind its improved outlook. Reddit reported $684 million in total revenue for Q4 2025, up 32% from the same period the prior year, with ad revenue reaching $412 million—a 50% increase year-over-year. These figures reflect stronger performance in both brand and performance advertising, driven by improved targeting tools and enhanced ad formats. The bullish sentiment is rooted in Reddit’s ability to leverage its highly engaged user base, which exceeded 600 million monthly active users in 2025. The platform has continued to deepen monetization through premium subscriptions, with Reddit Premium revenue increasing 48% YoY. Additionally, the introduction of new monetization features in niche communities—such as paid content tiers and community-specific advertising—has contributed to diversified income streams. Evercore ISI raised its price target on RDDT to $58, reflecting a 25% upside from current levels. Analysts believe Reddit’s focus on scalable, user-centric monetization models positions it for sustained growth, particularly in the branded content and influencer marketing space. The firm also noted that improved margin trajectory, with operating margins expanding to 18% in Q4 2025, underscores the platform’s path toward profitability. Investors and market participants are responding positively, with RDDT shares rising 7% in early trading following the report. The upgrade signals growing confidence in Reddit’s long-term commercial viability, especially as it competes with larger social media platforms in the digital advertising space.