Buy Rating on The Trade Desk: Growth Prospects in Programmatic CTV Advertising

Analyst James Heaney CFA of Jefferies reiterated a Buy rating on Trade Desk (TTD – Research Report), retaining the price target of $105.00.

James Heaney CFA has given his Buy rating due to a combination of factors impacting the Trade Desk’s market position and future revenue prospects. A key catalyst for his optimistic view is the acceleration of Connected TV (CTV) ad sales transitioning from direct deals to programmatic auctions. The Trade Desk’s recent partnership with Netflix is highlighted as a validation of a broader market trend towards fewer walled gardens within the CTV space. This partnership is expected to become a significant revenue contributor by 2025, thus bolstering the Trade Desk’s long-term financial outlook.
Additionally, the analyst points to the Trade Desk gaining access to nearly every major CTV supply source as a pivotal moment that will likely encourage a shift in advertising budgets towards auction-based CTV. This shift is anticipated to dissolve the constraints previously placed on programmatic CTV supply, further driving the company’s growth. Despite the high valuation multiple of 36x FY25E EBITDA, Heaney upholds a Buy rating with a price target of $105/share, which is underpinned by robust revenue growth projections and high margin expectations. The Trade Desk’s ability to thrive in an evolving ad tech environment solidifies the Buy recommendation.

In another report released today, Truist Financial also maintained a Buy rating on the stock with a $105.00 price target.

TTD’s price has also changed moderately for the past six months – from $68.050 to $90.250, which is a 32.62% increase.

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Trade Desk (TTD) Company Description:

California-based The Trade Desk, Inc. is a technology company which provides a technology platform for advertising buyers in the United States, Europe and Asia. Through its cloud-based platform, ad buyers can create, manage, and optimize more expressive data-driven digital advertising campaigns across ad formats, including display, video, audio, native and social, on a multitude of devices, including computers, mobile devices, and connected TV.