Riding the CTV Wave: Trade Desk's Robust Results and Market Share Gains Earn Analysts' Praise and Raised Price Targets

Keybanc analyst Justin Patterson maintains Trade Desk Inc TTD with an Overweight, raising the price target from $72 to $75.

The Trade Desk's 1Q reacceleration reinforced that the ad market has improved from December lows, and the company is still growing multiples faster than the industry. 

He continues to view momentum in CTV, shopper marketing, and product initiatives (Kokai launches June 6) as supporting 20%+ Y/Y growth in 2023E, with an acceleration back to the mid-to high-20% range in 2024E.

Needham analyst Laura Martin maintains Trade Desk with a Buy and raises the price target from $68 to $75. The analyst hailed the topline and bottomline beat and the Q2 guidance. She also cheered the share buybacks and Kokai launch.

RBC Capital analyst Matthew Hedberg maintains Trade Desk with an Outperform, raising the price target from $75 to $77. The analyst saw a strong start with revenue, adjusted EBITDA outperformance, and Q2 FY23 guidance ahead of expectations. 

CTV continues to be a key driver for growth, with increasing momentum in international markets and accelerating trends toward decision programmatic. 

Macro visibility has improved as he thinks the secular tailwinds create a good setup for topline growth while improving profitability. 

Truist Securities analyst Youssef Squali maintains Trade Desk with a Buy and raises the price target from $76 to $78.

The analyst is incrementally positive on TTD following more robust than expected 1Q23 results and 2Q23 guidance, as execution remains exceptional amid a challenging digital ad environment, reflecting material market share gains. 

Strength continues to skew to CTV given its rapid adoption in the U.S. and internationally and growing inventory from ad-supported streaming services, augmented by Retail Media budgets moving to the platform. 

He views the 2Q23 guide and 2023 commentary as appropriately conservative. TTD remains one of his favorite stocks for 2023, given its leading market position and execution against a compelling TAM.

Benchmark analyst Mark Zgutowicz maintained a Sell rating on Trade Desk with a $38 price target.

As expected, TTD echoed other leading ad tech companies' ad market stability commentary, and its numbers proved it. 

The analyst raised his FY23 topline trajectory. Given better-than-expected operating expenditure leverage, he lifted the GAAP operating margin. The re-rating reflects that TTD continues to outpace digital industry ad spend growth through 2027. 

However, the analyst flagged the elephant in the UID2 (auction) room as lacking large-scale publishers and frowning ad servers and publishing prospects.

Price Action: TTD shares traded lower by 1.43% at $64.04 on the last check Thursday.