On Thursday, Truist Securities revised its price target for The Trade Desk (NASDAQ:TTD) stock, reducing it to $95 from the previous $130 while sustaining a Buy rating on the shares. The adjustment was based on expectations that The Trade Desk will report first-quarter earnings consistent with current consensus estimates. According to InvestingPro data, analysts maintain a positive outlook with a consensus recommendation of 1.74 (Strong Buy), despite the stock’s significant 59% decline year-to-date. The company is anticipated to demonstrate growth surpassing that of the industry, albeit with a noticeable sequential slowdown due to internal issues and a sluggish uptake of Kokai.
The firm’s analysts foresee a potential impact on The Trade Desk’s second-quarter and full-year 2025 forecasts due to new tariffs. These tariffs are expected to negatively affect consumer spending in key sectors for The Trade Desk, such as Automotive and Retail. Additionally, a decline in consumer sentiment could potentially harm other important verticals, including Food & Drink and Health & Fitness.
Truist’s analysts noted that The Trade Desk’s stock has experienced a significant drop, falling 59% year-to-date, compared to a 10% decrease in the S&P 500 index. Despite these challenges, they believe that the stock has been relatively de-risked. This assessment is based on the company’s current trading at 8 times enterprise value to revenue (EV/Revs) and 21 times enterprise value to adjusted earnings before interest, taxes, depreciation, and amortization (EV/AEBITDA).
The Trade Desk, a provider of a technology platform for ad buyers, is navigating through an evolving digital advertising landscape, which is influenced by various factors including economic policies and consumer behavior. The company’s upcoming financial results, scheduled for May 7, will provide further insight into how it is managing these industry dynamics. With revenue growth of 26% in the last twelve months and an impressive five-year revenue CAGR of 30%, the company demonstrates strong momentum. For deeper insights into The Trade Desk’s financial health and growth prospects, including 17 additional ProTips and comprehensive valuation metrics, visit InvestingPro.
In other recent news, The Trade Desk has seen various developments impacting its financial outlook and board composition. Wolfe Research recently adjusted its price target for The Trade Desk shares from $100 to $60, maintaining an Outperform rating. Analyst Shweta Khajuria expects the company to exceed revenue estimates for the first quarter by a low single-digit percentage, despite macroeconomic uncertainties affecting second-quarter guidance. Similarly, KeyBanc Capital Markets reduced its price target from $74 to $67, citing softer guidance expectations and potential risks from the May Upfronts, where Amazon (NASDAQ:AMZN) could gain new connected TV partners. Meanwhile, Citizens JMP reiterated its Market Outperform rating with a $115 price target, highlighting the potential growth from The Trade Desk’s OpenPath technology. Jefferies also lowered its price target to $75 from $120, maintaining a Buy rating while noting increased competition from Amazon and potential shifts in advertising budgets towards streaming platforms.
Additionally, The Trade Desk announced that board member David Wells will not seek re-election at the 2025 annual meeting, leading to a reduction in board size. Kathryn E. Falberg will join the audit committee as chairperson following Wells’ departure. These developments come as The Trade Desk navigates a dynamic digital advertising landscape marked by rapid technological advancements and evolving regulatory standards.
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