Evercore ISI kicked off coverage of Reddit with an Outperform rating and a $320 price target, implying roughly 30% upside. The broker argues the platform still earns far less per user than rivals despite strong user engagement, leaving room to boost revenue. Evercore projects a 30‑40% annual revenue climb over the next three years, with profits accelerating as scale improves.

Recent product tweaks—richer ad formats, tighter targeting, and a more personalized home feed—should convert the site’s massive base of search‑driven and logged‑out visitors into higher‑value advertisers. Daily and weekly active users are rising double‑digit, led by faster growth in international markets than the U.S. Changes to onboarding aim to turn casual browsers into repeat users. A growing archive of posts is becoming attractive to large‑language‑model developers, and content licensing deals could add a high‑margin revenue stream.

While past social‑media stocks have stumbled after early hype, Evercore notes Reddit already shows profitability ahead of many peers, supported by intent‑rich content that resembles search.