On Friday, Cantor Fitzgerald analyst Deepak Mathivanan increased the price target for The Trade Desk (NASDAQ:TTD) to $71 from the previous $53, while maintaining a Neutral rating on the stock. The stock, currently trading at $73.20, has shown remarkable momentum with a 10.74% gain over the past week. The adjustment follows The Trade Desk’s first-quarter performance, which surpassed Wall Street’s revenue expectations by 7%, attributed to the company’s strong execution after facing product delays and a salesforce reorganization in the previous quarter. According to InvestingPro data, the company maintains robust financial health with a "GREAT" overall score.
The company’s EBITDA for the first quarter was reported at $208 million, outperforming estimates by approximately $60 million. This beat was partly due to a slower increase in fixed costs, coupled with impressive revenue growth of 25.07% over the last twelve months. The Trade Desk has provided guidance for the second quarter of 2025, projecting a year-over-year revenue increase of 17%. This forecast includes a degree of caution due to recent macroeconomic uncertainties, particularly within the automotive and consumer packaged goods sectors. InvestingPro analysis shows the company maintains strong fundamentals with a healthy current ratio of 1.81 and more cash than debt on its balance sheet.
From a product perspective, The Trade Desk is experiencing steady progress with the adoption of Kokai, its proprietary platform. Despite this positive development, the company anticipates potential impacts from broader market volatility, given its exposure to various brands and categories. Nevertheless, the strong results in the first quarter are expected to bolster confidence in The Trade Desk’s ability to execute effectively.
In light of these recent developments, Cantor Fitzgerald has revised its revenue estimates for the fiscal year 2026 upwards by 6%. However, the firm anticipates a gradual deceleration in revenue growth in the second half of 2025, taking into account the potential macroeconomic risks. The updated price target reflects these revised expectations and the current market outlook. Based on InvestingPro’s comprehensive analysis, which includes 16+ additional key insights and a detailed Fair Value assessment, the stock appears slightly overvalued at current levels. Discover the full analysis and access the Pro Research Report, along with extensive financial metrics and expert insights, available exclusively on InvestingPro.
In other recent news, The Trade Desk has garnered attention following its first-quarter earnings report for 2025, which showed significant improvement after a challenging fourth quarter in 2024. Truist Securities raised the company’s price target to $100, maintaining a Buy rating, citing strong execution and a positive second-quarter forecast. Piper Sandler also adjusted its price target to $65, while keeping a Neutral rating, acknowledging the company’s solid business model despite competitive pressures. KeyBanc Capital Markets increased its target to $80, citing the successful adoption of The Trade Desk’s Kokai technology as a key factor. UBS maintained its Buy rating with an $80 target, highlighting improved revenue growth estimates and strong first-quarter results. Susquehanna reaffirmed its positive stance with a $135 target, pointing to the company’s strategic changes and product enhancements as drivers of growth. These developments indicate a renewed confidence in The Trade Desk’s ability to capitalize on growth opportunities in the digital advertising sector. The company’s focus on innovation and strategic execution continues to attract positive analyst attention.
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