Friday – Truist Securities has reaffirmed its Buy rating on The Trade Desk (NASDAQ:TTD) shares, maintaining a price target of $155.00. In their latest note, Truist analysts highlighted the expected strong performance of The Trade Desk in the fourth quarter of 2024, driven by robust digital advertising demand. The analysts anticipate that the company’s success will be bolstered by continuous strength in Connected TV (CTV), Retail Media, and international markets, alongside increased political spending.
The Trade Desk is recognized for its proficiency in providing data-driven advertising solutions outside of the major walled gardens of the internet. With impressive gross profit margins of 81% and revenue growth of 26% in the last twelve months, the company has demonstrated strong operational efficiency. The analysts at Truist expect the company to showcase this strength in its upcoming earnings report on February 13. They also predict that the first quarter guidance for 2025 will align with the current consensus and demonstrate the typical seasonal decline from the fourth to the first quarter, which is expected to be more pronounced this year due to the influence of political advertising in the previous quarter.
Despite the stock trading at the higher end of its internet peers, Truist Securities believes that The Trade Desk remains a top pick for the year 2025. According to InvestingPro analysis, the company maintains a "GREAT" financial health score of 3.06, with 8 analysts recently revising their earnings estimates upward. Their confidence is based on the company's leading position in the market and its consistent performance against a backdrop of a large and expanding Total (EPA:TTEF) Addressable Market (TAM). For deeper insights into TTD's valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
The Trade Desk's strategic focus on non-walled garden inventory consumption, where advertisers can leverage data for targeted campaigns, has been a key factor in its growth and market leadership. As digital advertising continues to evolve, The Trade Desk's platform is well-positioned to benefit from the industry's shift towards more transparent and efficient advertising solutions.
The firm's price target of $155.00 reflects a belief in the ongoing potential of The Trade Desk to grow and expand its market presence. The Trade Desk is expected to release its fourth-quarter 2024 earnings report soon, which will provide further insight into the company's performance and future outlook.
In other recent news, The Trade Desk, a prominent player in the advertising technology sector, has garnered attention with a series of significant developments. BMO Capital Markets has maintained its Outperform rating on the company and raised its stock target to $160, reflecting a positive outlook on the firm's performance, particularly in the connected TV (CTV) advertising sector. Analysts at BMO Capital anticipate strong performance in Q4 2024 CTV advertising, contributing to solid results.
Moreover, The Trade Desk has acquired Sincera, a digital advertising data company, enhancing its programmatic advertising capabilities. This move is expected to offer advertisers integrated tools for a more transparent assessment of ad impressions and campaign investments.
Several analysts have also maintained positive ratings on The Trade Desk. Truist Securities maintained a Buy rating and raised its growth outlook, while Baird reiterated The Trade Desk as a 'Best Idea' and increased its price target. These updates reflect an extended duration of discounted cash flow analysis, suggesting a positive view of the company's long-term growth potential.
Piper Sandler's 2025 Ad Buyer Survey indicated a more optimistic outlook for the digital advertising industry, including The Trade Desk. The survey noted expected market share gains for The Trade Desk in the Connected TV segment, reinforcing the positive sentiment from analysts. These recent developments provide investors with key insights into the company's standing and potential future trajectory.
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