Raymond James raises price target for Reddit, causing shares to hit a record 7% increase.

• On Tuesday, Reddit's stock price increased by more than 7%, reaching a new record high, following Raymond James analysts' decision to raise their price target and maintain their "strong buy" rating.
• On Tuesday, during midday trading, the social media company's shares hit a new high of $191, surpassing the previous high of $182 on Jan. 6.
• In a Tuesday note, Raymond James analysts increased their Reddit price target from $150 to $200, citing their "confidence" that the company can grow its international business.

On Tuesday, shares of the social media platform rose over 7% to a record high after Raymond James analysts increased their price target and maintained their "strong buy" rating.

During midday trading, the company's shares reached a new high of $191, surpassing the previous high of $182 on Jan. 6. In late October, Reddit shares hit $100 for the first time after the company reported third-quarter financial results that exceeded Wall Street expectations.

In a Tuesday note, Raymond James analysts increased their Reddit price target from $150 to $200, citing their "confidence" that the company can grow its international business.

Reddit aims to expand its advertising business by attracting more users outside its core U.S. market, as stated by its Chief Operating Officer Jen Wong in November. In the third quarter, Reddit's online advertising sales increased by 68% year-over-year to $348.4 million.

The utilization of artificial intelligence to translate Reddit's site text into various languages, including Portuguese, French, Spanish, Philippines, and German, "should aid in enhancing local search rankings and ensure sustainable growth," according to Raymond James analysts.

Wong stated in November that the company's AI-translation efforts are crucial to its international growth, while Reddit's fastest-growing regions in terms of users are the U.K., the Philippines, India, and Brazil.

"Wong stated that the growth of our future users is definitely outside the US and beyond local languages, which presents an opportunity for another Reddit in every language."

According to Raymond James analysts, citing SimilarWeb research, Reddit's "authentic and uniquely moderated content" will help the company maintain its position as one of the top five most searched websites, resulting in more Reddit users creating accounts.

Reddit generates more revenue from users with accounts who are logged in compared to those who are logged out, despite the latter group having visited the platform more frequently in the past year due to internal improvements and a Google search algorithm change that favored authentic content.

Raymond James analysts pointed out in a "risks" section that Reddit may face unfavorable Google search algorithm updates that could lower the site's search results and slow down the conversion of logged-out users into more financially valuable logged-in users.

Steven Mnuchin on TikTok: We'd be interested in investing in the business.