Deutsche Bank Raises Reddit (RDDT) PT to $285 Highlighting Strong 2026 Buy Case

Reddit Inc. (NYSE:RDDT) is one of the best US stocks to buy and hold in 2026. On January 20, Deutsche Bank analyst Benjamin Black raised its price target on Reddit to $285 from $255 while maintaining a Buy rating.

Earlier on January 13, Morgan Stanley increased its price target for Reddit from $250 to $265 while maintaining an Overweight rating, as part of a broader outlook on the North American internet sector. The firm predicts that 2026 will mirror 2025’s trends, with investors favoring companies that achieve significant ROIC through GenAI and GPU-enabled technologies. While Reddit is positioned to benefit from these themes, Morgan Stanley warns that sectors facing high disruption uncertainty will likely continue to trade at lower valuation multiples.

A day before this, Wells Fargo increased its price target for Reddit to $207, up from $186, while maintaining an Equal Weight rating. The firm anticipates a strong Q4 2025 performance and solid Q1 2026 guidance driven by steady execution. While app traffic remains weak, the firm expects a new onboarding process to boost logged-in DAUs. Looking ahead, Wells Fargo identifies 2026 as a pivotal year due to the growth of AI search and the renewal of major data licensing agreements.

Reddit Inc. (NYSE:RDDT) operates a digital community in the US and internationally.

While we acknowledge the potential of RDDT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.