Reddit shares rise 6.19% after-hours after Evercore ISI initiates coverage with buy rating and $320 price target.

Reddit surged 6.19% in after-hours trading, driven by analyst upgrades and bullish sentiment. Evercore ISI initiated coverage with an "Outperform" rating and a $320 price target, citing Reddit's potential to grow revenue per user and its strong growth outlook. Morgan Stanley also raised its price target to $265 from $250, maintaining an "Overweight" rating. Despite a midday outage affecting over 100,000 users, the stock continued to rally, reflecting investor focus on Wall Street's optimistic valuation and growth projections. The moves align with Reddit's year-to-date 61% gain, as analysts highlighted its AI-driven monetization opportunities and favorable positioning in the internet sector.