Trade Desk’s Strong Q1 Performance and Strategic Initiatives Drive Upward Revisions and Buy Rating

Morgan Stanley analyst Matthew Cost maintained a Buy rating on Trade Desk (TTD – Research Report) today and set a price target of $80.00.

Matthew Cost’s rating is based on the impressive first-quarter performance of Trade Desk, which surpassed expectations and indicated that previous setbacks were likely temporary rather than indicative of deeper issues. Despite ongoing concerns about potential competition from Amazon and the company’s relationships with advertising agencies, the strong guidance for the second quarter, projecting a 17% year-over-year revenue growth, has instilled confidence in the company’s ability to manage expectations effectively.
Additionally, the rapid adoption of the Kokai platform, which is expected to be fully deployed across all customers by the end of the year, has been a significant growth driver. This, along with other strategic product initiatives, is expected to lead to upward revisions in earnings forecasts through 2025. As a result, Matthew Cost has raised the EBITDA estimates for 2025 and 2026 and increased the price target to $80, reinforcing the Buy rating.

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