Reddit’s stock (RDDT) saw an increase after analysts revised their forecasts ahead of the company’s upcoming earnings report. Analysts expressed positive expectations for the company, particularly considering its recent IPO and strategic investments.

Roth MKM analyst Rohit Kulkarni raised the target price for Reddit shares from $61 to $67, maintaining a “buy” rating. He highlighted the anticipated significant contributions from the partnership with OpenAI, which is expected to enhance engagement and relevance on the platform through advanced machine learning and AI technologies. Kulkarni also warned that the stock might face pressure as the IPO lockup period ends on August 9, allowing early investors to sell their shares.

Morgan Stanley also increased the target price from $63 to $70, maintaining a “hold” rating. Bernstein analyst Mark Shmulik similarly revised the target price from $45 to $50, maintaining a “sell” rating. Shmulik noted a significant increase in web traffic compared to the previous year and emphasized that the real test for Reddit will come in the third quarter, as the company navigates changes in Google’s algorithm affecting web traffic and ad revenues.