On Thursday, Loop Capital adjusted its outlook on The Trade Desk (NASDAQ:TTD), a leading technology company in the advertising industry, by increasing its price target to $109 from the previous $102. The firm maintained a Buy rating on the stock. This change comes after The Trade Desk reported a robust financial performance last week.
The Trade Desk's recent quarter's strength prompted Loop Capital to revise its estimates upward. The new price target is based on 40 times the adjusted EBITDA forecast for the year 2025, which is a step up from the earlier estimate. The analyst sees the company's market position strengthening further, reinforcing their positive stance.
The announcement that Netflix (NASDAQ:NFLX) is transitioning its advertising technology in-house, moving away from Microsoft (NASDAQ:MSFT), and partnering with The Trade Desk among other Demand-Side Platforms (DSPs) such as Google (NASDAQ:GOOGL) DV360 and Magnite, contributed to a nearly 5% intraday rise in The Trade Desk's stock price on Wednesday. This development occurred against the backdrop of a broader market where the S&P 500 index saw a 1% increase.
Loop Capital's analyst believes that the bullish thesis for The Trade Desk is materializing as anticipated. The firm's view is that The Trade Desk's solid market presence is becoming more deeply rooted, which is reflected in their reiterated Buy rating.
InvestingPro Insights
The Trade Desk's (NASDAQ:TTD) recent financials and strategic moves have been turning heads in the investment community, and with good reason. Real-time data from InvestingPro underscores the company's robust financial health and growth prospects. The Trade Desk boasts a gross profit margin of 81.29% over the last twelve months as of Q1 2024, highlighting its efficiency in generating revenue. Moreover, the company has experienced a revenue growth of 24.88% during the same period, demonstrating its ability to expand effectively in a competitive market.
Investors considering The Trade Desk will find two InvestingPro Tips particularly relevant. Firstly, the company holds more cash than debt on its balance sheet, providing a strong liquidity position. Secondly, net income is expected to grow this year, suggesting that The Trade Desk's profitability is on an upward trajectory. These factors, combined with the company's impressive gross profit margins and a recent price uptick of 36.12% over the last six months, paint a picture of a company with solid fundamentals and growth potential.
For those looking to delve deeper into The Trade Desk's performance and future outlook, InvestingPro offers an additional 17 tips on their platform. To explore these insights and more, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With the next earnings date slated for August 8, 2024, investors will be watching closely to see if The Trade Desk continues its upward trend.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.