On Thursday, Truist Securities adjusted their outlook on The Trade Desk (NASDAQ:TTD) shares, reducing the price target to $130 from the previous $155 while still maintaining a Buy rating on the company. The adjustment comes after The Trade Desk reported earnings that fell short of expectations and provided a softer guidance than anticipated for the first quarter of 2025. According to InvestingPro data, the company maintains strong fundamentals with an impressive gross profit margin of 81% and a robust financial health score rated as "GREAT."
Truist Securities’ analysts believe that the lower-than-expected fourth quarter of 2024 performance and the cautious outlook for the first quarter of 2025 were due to operational challenges. These included slower deployment of the Kokai platform and turnover in client-facing and engineering staff. However, these trends are reportedly reversing as the first quarter progresses. The company’s current valuation metrics suggest it may be trading above its Fair Value, with analyst targets ranging from $57 to $160.
The analysts remain optimistic about The Trade Desk’s future, projecting revenue growth to bottom out at approximately 17% in the first quarter and to increase to around 20% by the end of the year. They anticipate a similar improvement in the company’s margins. Truist Securities continues to view The Trade Desk as a multi-year growth compounder, holding a leadership position as the demand-side platform (DSP) for the Open Internet. This outlook aligns with the company’s historical performance, having achieved 26.14% revenue growth in the last twelve months. For deeper insights into The Trade Desk’s growth metrics and 15+ additional ProTips, visit InvestingPro.
The Trade Desk’s recent earnings miss and subsequent guidance adjustment have not dampened Truist Securities’ confidence in the company. The analysts underscored their positive stance, stating, "We remain constructive on TTD following a slight 4Q24 miss and a 1Q25 guide-down driven by execution missteps amid an otherwise healthy ad environment and several secular growth drivers."
Investors and market watchers will be monitoring The Trade Desk’s performance closely, looking for signs of the expected rebound in revenue growth and margins as the year progresses.
In other recent news, The Trade Desk has been the subject of several analyst reports after its earnings fell short of expectations. Cantor Fitzgerald reduced its price target for The Trade Desk to $100, maintaining a Neutral rating on the stock. The firm acknowledged the company’s robust product pipeline and growth initiatives, but opted for a cautious stance after the company’s quarterly results.
Similarly, Wolfe Research lowered its price target for The Trade Desk to $100, but endorsed the stock with an Outperform rating. The analyst highlighted the company’s consistent revenue growth and new partnerships as positive indicators for expansion and market reach.
Piper Sandler also adjusted its price target on The Trade Desk to $110, maintaining an Overweight rating on the shares. The analyst pointed out the company’s strategic moves aligned with its long-term objectives despite recent challenges.
BMO Capital Markets reduced its price target from $160 to $115, maintaining an Outperform rating. The firm revised its revenue and adjusted EBITDA estimates for the fiscal year 2025 downwards by 6.5% and 19%, respectively, but remained optimistic about The Trade Desk’s long-term prospects.
Lastly, KeyBanc Capital Markets reduced its price target to $130 from $142 while sustaining an Overweight rating on the shares. The analyst remains optimistic about the company’s prospects, citing significant opportunities in connected TV, retail media, and audio. These are the recent developments for The Trade Desk.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.