On Friday, Piper Sandler adjusted its price target for The Trade Desk (NASDAQ:TTD) shares, raising it to $65.00 from the previous $55.00, while maintaining a Neutral rating. The adjustment follows The Trade Desk’s first-quarter earnings report for 2025, which marked a notable improvement after a weaker performance in the fourth quarter of 2024. The company, which maintains a "GREAT" financial health score according to InvestingPro analysis, reported strong revenue growth of 25% year-over-year with an impressive gross profit margin of 80%.
The Trade Desk experienced a significant decline earlier in the year, with its stock value dropping by approximately 50% year-to-date before the latest earnings announcement, with InvestingPro data showing a particularly steep 52% decline over the past six months. Despite this setback, Piper Sandler’s analyst noted that the first-quarter results represented a positive development for the company, which operates within the connected TV (CTV) and digital advertising sectors. The company maintains strong fundamentals, with more cash than debt on its balance sheet and liquid assets exceeding short-term obligations.
The analyst highlighted The Trade Desk’s solid business model and its strategic position in the CTV space. Despite expressing concerns over cautious advertising checks and increasing competition from Amazon (NASDAQ:AMZN) and other competitors, the report acknowledged The Trade Desk’s year-over-year gain of over 400 basis points in the Display advertising category.
The Trade Desk’s recent earnings report has been seen as a positive indicator, according to Piper Sandler. The analyst pointed out that while there are competitive and valuation concerns, with the company’s valuation at approximately 25 times its forecasted 2026 EBITDA, the latest financial results indicate a move in the right direction.
In conclusion, Piper Sandler reiterated its Neutral stance on The Trade Desk stock but increased the price target based on updated estimates, reflecting a more optimistic outlook on the company’s financial performance.
In other recent news, The Trade Desk reported impressive first-quarter earnings that exceeded expectations, with a 25% year-over-year increase in revenue to $616 million and a significant rise in adjusted EBITDA to $208 million. This strong performance has led several analyst firms to maintain positive outlooks on the company. KeyBanc Capital Markets raised its price target to $80, citing improved performance and the successful adoption of The Trade Desk’s Kokai technology. UBS also reaffirmed a Buy rating with an $80 target, highlighting an improved revenue growth estimate for FY25 and increased EBITDA margin projections. Meanwhile, Susquehanna maintained a positive rating with a $135 target, noting the company’s strategic changes and product enhancements as key growth drivers. BMO Capital Markets kept an Outperform rating and a $115 target, emphasizing the accelerated adoption of Kokai and its impact on reducing costs. BofA Securities reiterated a Buy rating with a $130 target, attributing the company’s robust results to strategic changes and innovations like Kokai and OpenPath. These developments indicate a strong outlook for The Trade Desk, despite potential macroeconomic challenges.
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