On Wednesday, Morgan Stanley reaffirmed its confidence in the performance of The Trade Desk (NASDAQ:TTD), as the company strengthens its partnership with Disney in the realm of connected TV (CTV) advertising. The financial firm maintained an Overweight rating on the advertising technology company's stock, with a share price target set at $100.00.
The Trade Desk recently announced its direct integration with Disney's Hulu and Disney+ ad inventory through DRAX Direct, which is expected to modestly benefit the company. Disney, which is anticipated to account for approximately 13% of the total US CTV ad spend this year, is increasing its adoption of programmatic advertising, aiming to achieve 75% of its ad revenue through this method, surpassing the initial goal of 50%.
The collaboration between The Trade Desk and Disney is seen as a testament to The Trade Desk's leading position as an independent demand-side platform (DSP). The move by Disney to bypass supply side platforms (SSPs) in favor of a direct partnership with The Trade Desk underscores the company's market strength.
Morgan Stanley's analysis suggests that the alliance with Disney not only showcases the value of The Trade Desk's product offerings but also signals a bullish outlook for the company's potential to capture a larger share of the CTV market.
The partnership is also viewed as supportive of The Trade Desk's OpenPath initiative, which aims to enhance transparency and efficiency within the advertising technology value chain.
The Trade Desk's ongoing efforts to innovate and collaborate with major industry players like Disney reflect its strategic approach to expanding its influence and market share in the rapidly evolving CTV advertising landscape.
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