r/stocks
RDDT FY2026 EPS update ($6.77) and 8-month price target ($304)
Bullish on RDDT with a $304 price target by FY2026 end, based on avg EPS est. of $6.77 and 45x P/E multiple.
- Consensus EPS estimates for FY2026 are robust, averaging $6.77 from reputable sources like S&P Global and Finviz.
- Applying a reasonable 45x P/E multiple to the EPS estimate yields a significant upside potential to $304.
- Historical trend shows Reddit consistently beating EPS estimates, suggesting the current forecasts may be conservative.
- The valuation relies heavily on maintaining a high 45x P/E multiple, which could compress in a less favorable market environment.
- The timeline to reach the target is relatively short (less than 8 months), requiring flawless execution and market cooperation.
- Reliance on consensus estimates carries risk if macroeconomic conditions deteriorate or user growth stagnates.
Stock Analysis updated its FY2026 RDDT EPS estimate to $7.02. Stock Analysis uses consensus estimates from S&P Global, a top-3 institutional market-data provider alongside Bloomberg and the London stock exchange group.
Finviz updated its FY2026 RDDT EPS estimate to $6.51. Finviz aggregates estimates from exchanges and institutional data providers.
The average of the 2 is $6.77. Applying a 45x P/E multiple (midpoint of a 40-50) implies a price target of $304 (+76% from the current price) by the end of FY2026, which Reddit reports around 2027-02-03 (less than 8 months from now).
Reddit tends to beat EPS estimates.
I'm just glad that they let me buy pre-IPO here as they thought I was cool or something‽