10 Stocks Bolstered by Broader Market Cheer

8. Reddit Inc. (NYSE:RDDT)

Reddit saw its share prices increase by 24.72 percent on Wednesday to end at $110.86 apiece amid the overall market optimism coupled with an analyst’s optimistic outlook on the company, saying it has the potential to grow further.

In its market note, Truist gave RDDT a Buy rating and a price target of $150, representing a 35-percent upside from its latest closing price.

According to the analyst, the upgrade was based on the company’s rapid growth trajectory, margin expansion potential, and differentiated position in the digital advertising sector.

Over the next two years, Truist expects RDDT to nearly double its revenues to $2.9 billion, supported by gains in its digital advertisements and monetization tailwinds.

Last year, RDDT was able to post a full-year revenue of $1.3 billion, representing less than 1 percent of the global digital ad market.

Meanwhile, RDDT earned a more pessimistic outlook from Bank of America after earning a Neutral rating and a lower price target of $110 from the $190 previously.

Another investment firm, Baird, also reduced its price target for RDDT to $125 from $185 previously, while maintaining its Neutral rating.