BMO Capital analyst Brian Pitz reiterated a Buy rating on Trade Desk today and set a price target of $115.00.
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Brian Pitz has given his Buy rating due to a combination of factors that highlight Trade Desk’s potential in the digital advertising market. Despite concerns about competition from Amazon’s DSP, Pitz believes that the digital advertising space, valued at over $1 trillion, allows for multiple successful players, including Trade Desk. He acknowledges that while the transition to the new Kokai platform may have contributed to a recent earnings miss, this platform represents a significant advancement in ad-buying, expected to drive more ad spend to Trade Desk over time.
Furthermore, Pitz notes that Trade Desk’s valuation remains attractive, especially as the company is poised to capture a larger share of advertising budgets shifting towards digital and connected TV platforms. The Kokai platform’s ability to lower acquisition costs by 20% is seen as a strong incentive for advertisers to increase their spending through Trade Desk. Overall, Pitz maintains a positive outlook, reiterating an Outperform rating and a target price of $115, as he sees Trade Desk well-positioned to capitalize on the growing digital ad market.
According to TipRanks, Pitz is a top 100 analyst with an average return of 20.2% and a 75.17% success rate. Pitz covers the Communication Services sector, focusing on stocks such as Alphabet Class A, Netflix, and Take-Two.