Benchmark analysts reiterated a Sell rating and $32 per share price target for The Trade Desk Inc . (NASDAQ:TTD) in a note Monday previewing the company's fourth-quarter earnings.
The analysts said they expect another revenue reset for the company when it reports after the close on Thursday, February 15.
Despite the projected downside, the analysts stated that based on industry data highly correlated to TTD revenue, they believe the company can "comfortably exceed" its $580 million Q4 guidance by $10 million or more.
"However, we expect 1Q revenue guidance to modestly disappoint and suggest a '24E revenue trajectory that is roughly -4% below consensus, or ~16.0% vs. ~20.5% y/y (consensus)," the analysts wrote.
Benchmark sees lower forward revenue expectations and multiple compression, suggesting a near-term stock correction to ~$53 per share.
The firm also sees "increasingly challenging" year-on-year revenue comparisons beginning in the first quarter of 2024 through to the third quarter, reflecting a muted political ad spending environment and further CTV growth moderation.