Analysts See Strong Growth Potential For The Trade Desk Amid CTV Expansion And Stable Digital Ad Market

Core Viewpoint - The Trade Desk, Inc. reported strong second-quarter financial results, with analysts generally maintaining positive ratings and price forecasts for the stock, indicating confidence in the company's performance in the digital advertising sector. Analyst Ratings and Price Forecasts - Piper Sandler analyst Matt Farrell reiterated an Overweight rating with a price forecast of $110 [1] - Wedbush analyst Scott Devitt maintained an Outperform rating with a price forecast of $110 [1] - RBC Capital Markets analyst Matthew Swanson reiterated an Outperform rating, raising the price forecast to $110 [1] - Benchmark analyst Mark Zgutowicz reiterated a Sell rating, increasing the price forecast to $57 from $49 [1] - Truist Securities analyst Youssef Squali maintained a Buy rating, raising the price forecast to $108 from $105 [1] - Oppenheimer analyst Jason Helfstein reiterated an Outperform rating with a price forecast of $120 [1] - Stifel analyst Mark Kelley reiterated a Buy rating, increasing the price forecast to $111 from $105 [1] Market Conditions and Company Outlook - Piper Sandler noted that despite initial concerns, the digital advertising landscape appears stable, with expectations for the company to gain market share regardless of macroeconomic conditions [2] - Wedbush highlighted an impressive third-quarter outlook despite macroeconomic uncertainties and slower YouTube growth [3] - RBC Capital Markets mentioned that growth in the second half of the year is expected to benefit from increased political spending related to the U.S. election cycle [4] - Truist Securities attributed the company's momentum and market share gains to the rapid adoption of Connected TV (CTV) and shifting Retail Media budgets [5] Financial Estimates and Performance - The company is viewed as a leading player in digital advertising, with strong results expected to alleviate investor concerns about weaker CTV pricing [6] - The analyst increased the 2024 gross billings/revenue estimate by 1% but reduced EBITDA by 2% [7] - For 2025, estimates for gross billings/revenue and EBITDA were lowered by 1% and 3%, respectively [8] Stock Performance - TTD shares are trading higher by 12.3% to $99.14 at last check [9]