On Friday, Truist Securities analyst Youssef Squali increased the price target for The Trade Desk (NASDAQ:TTD) shares to $100 from the previous $95 while maintaining a Buy rating. This adjustment follows The Trade Desk’s first-quarter earnings report for 2025, which evidently showcased the company’s return to strong execution practices. The company’s stock has shown remarkable resilience, gaining over 10% in the past week, though InvestingPro data shows it remains significantly below its 52-week high of $141.53.
Squali’s optimism stems from The Trade Desk’s first-quarter performance coupled with a robust second-quarter forecast, indicating an accelerated adoption of their product Kokai, improved sales execution, and resilience amidst an uncertain macroeconomic environment. According to InvestingPro data, the company maintains impressive fundamentals with an 80% gross profit margin and 25% revenue growth over the last twelve months. The positive developments mark a significant turnaround from the fourth quarter of 2024, which saw the company’s stock price plummet by over 50% after a disappointing earnings report attributed to a slower start to Kokai’s adoption and a volatile macroeconomic climate.
The analyst noted that The Trade Desk’s first-quarter results and future outlook underscore the company’s solid underlying fundamentals. The report suggests that despite past setbacks, the long-term investment thesis for The Trade Desk remains largely unaltered. InvestingPro analysis reveals the company’s strong financial health with a "GREAT" overall score, supported by robust cash flows and a healthy balance sheet. InvestingPro subscribers have access to 16 additional key insights about TTD’s valuation and growth prospects.
Squali also emphasized The Trade Desk’s sustained position as a leader in the demand-side platform (DSP) sector for the Open Internet. His remarks indicate confidence in the company’s potential for multi-year growth, further reinforcing the rationale behind the raised price target.
The Trade Desk’s recent performance and the subsequent price target increase reflect the company’s capability to navigate through challenging economic conditions while capitalizing on growth opportunities within the digital advertising space.
In other recent news, The Trade Desk reported a strong first-quarter earnings performance, which has led to several analyst firms adjusting their outlooks. Piper Sandler raised its price target for The Trade Desk to $65, maintaining a Neutral rating, after noting significant year-over-year gains in the Display advertising category. KeyBanc Capital Markets increased its price target to $80, citing the successful adoption of The Trade Desk’s Kokai technology, which has improved Return on Ad Spend for advertisers. UBS also kept a Buy rating, with a steady price target of $80, highlighting improved revenue growth estimates and increased EBITDA margins for FY25.
Susquehanna reaffirmed its positive stance with a $135 price target, attributing The Trade Desk’s success to strategic changes and product enhancements, including the Kokai technology and UID2 system. BMO Capital Markets maintained an Outperform rating with a $115 price target, noting a 7% revenue increase and a 40% rise in adjusted EBITDA, driven by the adoption of Kokai. The Trade Desk’s guidance for the second quarter indicates continued confidence, with projected revenue and EBITDA slightly ahead of market expectations. Analysts have noted that The Trade Desk is well-positioned to navigate current economic challenges and capitalize on growth opportunities in the digital advertising sector.
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