What Are The 5 Main Drivers For The Trade Desk Upgrade?

Google's actions seem to be positive for AdTech companies such as Trade Desk Inc TTD, which appears positioned for share gains and accelerated growth, according to KeyBanc Capital Markets.

The Trade Desk Analyst: Justin Patterson upgraded the rating for Trade Desk from Sector Weight to Overweight, while establishing a price target of $851.

The Trade Desk Thesis: The decisions made by Google — owned by Alphabet Inc GOOG GOOGL — “effectively signal that there will be minimal innovation in the DV360 product, The Trade Desk's key competitor,” Patterson said in the upgrade note. 

Potential for share gains creates upside for the company’s revenue growth forecasts, which are currently at around 36% for 2021 and 30% for 2022, he added.

The analyst mentioned five main drivers for The Trade Desk going forward:

• Greater adoption of Unified ID 2.0
• Ongoing traction in international markets
• Continued strength in connected TV
• The Solimar platform update
• Potential for retailer partnerships beyond Walmart Inc WMT

“Collectively, this reduces The Trade Desk's sensitivity to the ~20% of impressions exposed to cookies while also creating upward revision potential,” he wrote.

TTD Price Action: Shares of The Trade Desk had risen by 5.48% to $690 at the time of publication Monday.

(Photo by Wojtek Witkowski on Unsplash)