Buy Rating for The Trade Desk Amidst Netflix Partnership and Growth Prospects

Analyst Brian Fitzgerald from Wells Fargo maintained a Buy rating on Trade Desk (TTD – Research Report) and keeping the price target at $115.00.

Brian Fitzgerald has given his Buy rating due to a combination of factors that underscore the growth potential and strategic positioning of The Trade Desk (TTD). The announcement that Netflix (NFLX) is opening inventory to programmatic advertising demand via TTD is a significant development, poised to augment The Trade Desk’s growth trajectory in the second half of the year. This move is anticipated to drive further adoption of UID2 and strengthen the value of TTD’s network, while also placing competitive pressure on industry players that have yet to embrace programmatic advertising.

The unexpected timing of Netflix’s move into programmatic availability with TTD represents a positive surprise that could lead to upward revisions in revenue estimates for the latter part of the year. Additionally, the integration into major events such as the Olympics and elections is set to bolster ad spends, suggesting that current revenue forecasts may be conservative. TTD’s emerging role as a platform benefiting from network effects, driven by partnerships with advertisers, publishers, and retailers, solidifies its competitive advantage in the connected TV (CTV) advertising space. With these strategic developments, Fitzgerald sees TTD not only capturing a larger portion of the CTV market but also reinforcing its position as a differentiated leader in the advertising technology sector.

In another report released today, Stifel Nicolaus also reiterated a Buy rating on the stock with a $105.00 price target.

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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.