Strategic Initiatives and AI Innovation Drive Laura Martin’s Buy Rating on Trade Desk

Needham analyst Laura Martin has maintained their bullish stance on TTD stock, giving a Buy rating on May 9.

Laura Martin’s rating is based on several strategic initiatives and growth opportunities identified during her discussion with Trade Desk’s CEO, Jeff Green, at the Needham Internet and Media conference. One of the key factors influencing her Buy rating is the company’s operational priorities under the leadership of the new COO, Vivek Kundra. These priorities include integrating sales and client relationship teams to improve efficiency, focusing on hiring senior talent to enhance operational leverage, and utilizing data-driven decision-making. These steps are expected to lead to increased return on invested capital and faster revenue growth compared to the growth in full-time employees, suggesting potential upside to financial estimates.
Additionally, Laura Martin is optimistic about Trade Desk’s plans to develop a Generative AI-based creative marketplace. This initiative aims to lower advertising costs and expedite the creation of new connected TV ads, potentially opening up new revenue streams. By sharing revenue with new AI-based app providers and expanding their platform to smaller clients, Trade Desk could significantly increase its total addressable market. These growth prospects contribute to Martin’s positive outlook and her Buy rating on the stock.

According to TipRanks, Martin is a 4-star analyst with an average return of 3.8% and a 47.29% success rate. Martin covers the Communication Services sector, focusing on stocks such as Roku, Magnite, and Perion Network.

In another report released on May 9, Citi also maintained a Buy rating on the stock with a $82.00 price target.