Reddit Shares Slip as Analysts Debate Valuation, Growth Outlook

Reddit Inc. shares fell as much as 5.1% Monday to hit the lowest level since its March trading debut after a slew of Wall Street analysts initiated coverage of the social-media company.

So far, the view from Wall Street tips bullish, but analysts are split on the company’s growth potential and whether or not it is fairly valued at current levels. Of analysts that have started coverage, eight have buy-equivalent ratings, five say to hold and only two recommend selling shares, according to data compiled by Bloomberg.

The average price target of nearly $50 implies about 22% upside from where ...