In a report released today, James Heaney CFA from Jefferies maintained a Buy rating on Trade Desk (TTD – Research Report), with a price target of $75.00.
James Heaney CFA has given his Buy rating due to a combination of factors that highlight both challenges and opportunities for Trade Desk. Despite facing increased competition from Amazon’s DSP and some disruptions from the Kokai rollout, Trade Desk remains a leading demand-side platform (DSP) according to industry experts. The resilience of the advertising environment, with advertisers maintaining their budgets despite macroeconomic concerns, supports the potential for growth.
Furthermore, the anticipated shift of live sports and events to platforms like Netflix, along with the potential rollout of UID 2.0, positions Trade Desk to benefit from programmatic advertising growth. Although the price target has been lowered due to these competitive pressures, the significant year-to-date stock sell-off is seen as excessive. The stock’s current valuation, at its lowest since March 2020, combined with an expected 20% three-year EBITDA CAGR, suggests a promising upside, justifying the Buy rating.