Deutsche Bank analyst Ben Black raised the price target on Reddit (NYSE: RDDT) to $65.00 (from $62.00) while maintaining a Buy rating

The analyst comments "Yesterday, Reddit announced a deal to license its data to OpenAI 

as well as to incorporate Reddit content into ChatGPT‘s chatbot and other products. While terms were not disclosed, of note was Reddit's ability to build AI 

powered features on OpenAI's platform of AI models and OpenAI becoming a Reddit advertising partner. 

In a similar vein to the Google deal, we think the value of the deal may have been sold at a discount given these added benefits. That said,  

if the cash terms are similar to the Google deal, we believe it could provide $54mn of annual EBITDA, assuming 90% incremental margins. 

Currently in our model we are assuming two LLM deals signed through 2025, though this second deal came earlier than anticipated, and now that two have already been signed