Trade Desk's Potential Upside: Buy Rating Supported by Positive Macroeconomic Trends and CTV Growth.

Citi analyst Ygal Arounian maintains a Buy rating on Trade Desk's stock, citing positive macroeconomic trends, strong connected TV growth, and the company's differentiation from competitors. Arounian believes there's ample growth opportunity for both platforms, with shares trading at approximately 26 times estimated 2026 EBITDA, offering potential for valuation multiples to increase if the company surpasses its second-quarter expectations. Bank of America Securities also maintains a Buy rating with a $130.00 price target.

The Trade Desk (TTD) stock has been the subject of mixed analyst sentiments in recent weeks, with some analysts maintaining a positive outlook despite a recent sell-off. Citi analyst Ygal Arounian recently reiterated his Buy rating on the stock, highlighting positive macroeconomic trends, strong connected TV growth, and the company's differentiation from competitors [2]. Arounian believes there is ample growth opportunity for both platforms, with shares trading at approximately 26 times estimated 2026 EBITDA, offering potential for valuation multiples to increase if the company surpasses its second-quarter expectations.

Bank of America Securities also maintains a Buy rating with a $130.00 price target, indicating confidence in the company's long-term prospects [3]. Despite these positive sentiments, the stock has seen a decline of 32% over the past year, with recent changes in analyst estimates reflecting the latest near-term business trends [1]. The Trade Desk's Q1 2025 results demonstrated its ability to grow amid adversity, with revenue rising 25% year-over-year to $616 million and net income surging to $51 million [2]. The company's 95% customer retention rate and strategic partnerships with publishers like Warner Bros. Discovery and The New York Post have further bolstered its growth trajectory.

However, the stock has also faced challenges, such as the loss of a Sonos hardware partnership and potential regulatory uncertainty. The Trade Desk's Forward P/E ratio of 40.59 is a premium compared to its industry average, suggesting a higher valuation relative to peers [1]. Despite these challenges, the company's focus on privacy-first solutions and open internet ecosystems positions it well to capitalize on structural shifts in the digital advertising sector.

Investors should closely monitor the company's Q2 earnings, expected on August 8, 2025, for insights into its execution on revenue guidance. Additionally, the adoption metrics of OpenPath and the integration of Sincera into Q3/Q4 results will be crucial indicators of the company's growth trajectory [2].

References:

[1] https://finance.yahoo.com/news/trade-desk-ttd-stock-moves-214504066.html
[2] https://www.ainvest.com/news/trade-desk-strategic-positioning-growth-trajectory-justify-buy-2506/
[3] https://www.gurufocus.com/news/2947621/trade-desk-ttd-receives-downgrade-and-price-target-reduction-from-wells-fargo-ttd-stock-news