Cantor Fitzgerald cuts Broadstone Net Lease stock price target on rates

Cantor Fitzgerald has reduced its price target on Reddit Inc. (NYSE: RDDT) from $170 to $120, maintaining a Neutral rating on the shares. The firm noted Reddit's third-quarter revenue was slightly above Street estimates, but the growth was not substantial compared to recent quarters. The company projected fourth-quarter revenue to be slightly below expectations on the high end.

Reddit's third-quarter daily active users fell short by 3 million due to ongoing search referral challenges, with the company expecting continued pressure in the fourth quarter. In response, Reddit plans to introduce a primarily logged-in experience in select markets during the fourth quarter, which might introduce more volatility in user metrics.

The firm highlighted that while Reddit is improving feed personalization and shifting U.S. marketing spend toward app installs to boost retention and engagement, the revenue trajectory in the second half of the year is likely to spark debates about the company's monetization growth runway. Despite the near-term difficulties, InvestingPro analysis suggests Reddit may still be undervalued based on its Fair Value assessment, with the company exhibiting strong gross profit margins of 91%.

However, the stock has declined 44% year-to-date and is close to its 52-week low of $119.27. Reddit's third-quarter revenue surpassed expectations and adjusted EBITDA met targets, but the company issued fourth-quarter guidance that was lower than analyst estimates due to accelerating declines in search referral traffic.

Several analysts have lowered their price targets for Reddit, citing concerns over declining user traffic and growth. Guggenheim, Needham, and BofA Securities have reduced their targets to $170, $150, and $135, respectively, while retaining their ratings. KeyBanc even downgraded Reddit's stock to Sector Weight from Overweight, pointing to potential low double-digit percentage declines in search traffic and its impact on revenue and EBITDA projections.