Trade Desk downgraded to Neutral at Rosenblatt amid pressures from agencies

As previously reported, Rosenblatt analyst Barton Crockett downgraded Trade Desk (TTD) to Neutral from Buy with a $25 price target. The firm was “surprised by the sharp tone” in the press report yesterday of a dispute between Trade Desk and Publicis (PUBGY) following “a less pointed but still surprisingly sharp tone” around specific tensions with WPP (WPP) and Dentsu, telling investors that it sees the potential that this “could be emblematic of a structural change.” Pressures on the agency sector, sparking revenue deceleration, declines and consolidation in that sector, could be pushing agencies to take a more confrontational approach with Trade Desk and move more into Trade Desk’s arena, creating revenue risks and making it difficult for the multiple to move up, the analyst tells investors.