SOPA Images/LightRocket via Getty Images
The Trade Desk stock (NASDAQ:TTD) reached its highest point since August with an 18% gain Friday in the wake of an earnings beat that also contained a first-quarter forecast much better than expected.
If The Trade Desk's (TTD) last quarter was a "bloop," this one is a "blast," Citi said.
"After the 4Q guide indicated growth stepping down to high-teens, we saw investors raise questions on fundamental growth drivers for 2024," analyst Ygal Arounian wrote. "While we still see the outperformance in the quarter as being driven by a return to a better macro since November, which has continued into 1Q, more than vindication of any questions around CTV CPM growth or the impact of cookie deprecation, management spent time on why it believes TTD is positioned well to manage a changing CTV landscape, and cookie-deprecation."
Citi boosted its price target to a Street-high $110, pointing to another 23% upside beyond Friday's 18% rise. "Valuation is at an extraordinary premium, but even as estimates move up, we see further growth upside in 2024," Arounian said.
It was a "drop the mic" quarter -- results and an outlook to "silence the bears," BMO analyst Brian J. Pitz said in reaction. The Trade Desk (TTD) is "best positioned against two digital ad sector mega-trends in 2024: 1) third-party ad cookie deprecation in Google Chrome and 2) capturing a surge of ad dollars related to the U.S. presidential election ... we see vast go-forward opportunities around Connected TV and Retail Media advertising," he said, pointing to a $42B total addressable market. BMO boosted its price target to $107 from $88.
The big beat speaks to the company's secular tailwinds, Morgan Stanley's Matthew Cost said, pointing out that Q1 guidance implies the fastest revenue growth since 2022.
"From here we are bullish on TTD efforts to lean into the stronger ad market with a robust product pipeline, as management sees opportunities from market shifts in '24," Cost wrote; he's boosted his price target to $100 from $70.