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Trade Desk’s Strategic Positioning and Growth Prospects Reinforce Buy Rating

Trade Desk’s Strategic Positioning and Growth Prospects Reinforce Buy Rating

Analyst Brian Pitz from BMO Capital maintained a Buy rating on Trade Desk (TTDResearch Report) and decreased the price target to $115.00 from $160.00.

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Brian Pitz has given his Buy rating due to a combination of factors surrounding Trade Desk’s strategic positioning and future growth prospects. Despite recent execution challenges, including a slower rollout of the Kokai platform and some organizational restructuring, Pitz maintains confidence in Trade Desk’s ability to improve execution over time. The company is transitioning its ad platform to Kokai, which utilizes AI to enhance advertiser value, and aims for full customer transition by year-end.
Moreover, Trade Desk remains well-positioned in the rapidly growing connected TV (CTV) market, which is seen as a significant growth driver. The company is expected to continue gaining inventory access in this space, which bolsters its long-term growth potential. Additionally, despite concerns about the sustainability of take-rates, there are no indications of a structural shift, and Trade Desk’s historical take-rate range has remained stable. These factors, coupled with an increased stock buyback program, support the positive outlook reflected in the Buy rating.

In another report released today, Citi also maintained a Buy rating on the stock with a $108.00 price target.

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