The Analyst Verdict: Trade Desk In The Eyes Of 11 Experts

Trade Desk TTD has been analyzed by 11 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $82.29, with a high estimate of $95.00 and a low estimate of $70.00. This current average has decreased by 15.16% from the previous average price target of $97.00.

Interpreting Analyst Ratings: A Closer Look

The perception of Trade Desk by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Trade Desk. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Trade Desk compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Trade Desk's stock. This comparison reveals trends in analysts' expectations over time.

Capture valuable insights into Trade Desk's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Trade Desk analyst ratings.

Unveiling the Story Behind Trade Desk

The Trade Desk provides a self-service platform that helps advertisers and ad agencies programmatically find and purchase digital ad inventory (display, video, audio, native, and social) on different devices like computers, smartphones, digital out of home, and connected TVs. It utilizes data to optimize the performance of ad impressions purchased. The firm's platform is referred to as a demand-side platform in the digital ad industry. The firm generates its revenue from fees based on a percentage of what its clients spend on advertising. The Trade Desk became a public company in 2016 and has since increased revenue at a 43% average annual rate. During that period, it has been profitable with operating margins of 10%-28%.

Understanding the Numbers: Trade Desk's Finances

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Positive Revenue Trend: Examining Trade Desk's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 24.95% as of 30 September, 2023, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Communication Services sector.

Net Margin: Trade Desk's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 7.98%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Trade Desk's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 1.86%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Trade Desk's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.89%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Trade Desk's debt-to-equity ratio is below the industry average at 0.12, reflecting a lower dependency on debt financing and a more conservative financial approach.

The Significance of Analyst Ratings Explained

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

This article was generated by Benzinga's automated content engine and reviewed by an editor.