Citi Reaffirms Buy Rating on Trade Desk, Cites Strong CTV Trends and Ad Spend

Citi reaffirmed its Buy rating and $90 price target on The Trade Desk (TTD) citing strong CTV trends and ad spend. The firm put TTD on a 90-day positive catalyst watch ahead of Q2 earnings, noting healthy trends and increased ad expenditure. Citi acknowledged competition from Amazon's DSP, but said TTD remains unique in the programmatic ad industry.

Citi has reaffirmed its Buy rating on The Trade Desk (TTD) with a price target of $90, citing strong trends in connected TV (CTV) advertising and increased ad spend. The firm has placed TTD on a 90-day positive catalyst watch leading up to the company's Q2 earnings report, highlighting healthy market trends and increased ad expenditure [1].

Citi's analysts acknowledge competition from Amazon's demand-side platform (DSP) but note that TTD's unique position in the programmatic ad industry sets it apart. The firm's positive outlook is based on robust financial performance and strategic advancements, which have been highlighted in recent earnings calls [1].

In the past three months, 28 analysts have given TTD a Strong Buy rating, with an average price target of $87.63. The high forecast is $135.00, while the low forecast is $48.00, indicating a significant range of expectations [2].

Trade Desk's financial health and strategic focus on growth areas like CTV and international markets are key factors driving analyst optimism. While technical indicators show some resistance, the company's strong financial performance and strategic focus on growth areas outweigh valuation concerns [1].

The Trade Desk's strong performance and strategic positioning in the programmatic ad industry have led multiple analysts to reaffirm their Buy ratings and price targets. For instance, Truist Financial, Evercore ISI, and Bank of America Securities have all reiterated their Buy ratings with price targets ranging from $82 to $130 [1].

In the past 12 months, TTD has beaten its earnings estimates 0.00% of the time, while the overall industry has beaten its estimates 66.34% of the time. Similarly, TTD has not beaten its sales estimates in the past 12 months, with the overall industry beating sales estimates 68.48% of the time. This indicates that while TTD has performed in line with the industry, there is significant room for growth and improvement [2].

As TTD prepares for its Q2 earnings report, investors should closely monitor the company's performance and the impact of the ongoing market trends on its financial health. Citi's positive catalyst watch provides a timely reminder of the potential opportunities and risks associated with the company's stock [1].

References:
[1] https://www.tipranks.com/stocks/ttd/forecast
[2] https://www.tipranks.com/stocks/ttd/forecast