MoffettNathanson downgraded The Trade Desk (TTD) to Sell from Neutral with a price target of $45, down from $75. The firm views Trade Desk’s valuation halo as “forever tarnished by a multitude of rising threats,” the analyst tells investors in a post-earnings note. As revenue growth and operating leverage moderates, the firm believes shares should trade on “more conventional valuation metrics” like GAAP earnings and free cash flow and using Netflix (NFLX) as a guide, it thinks that a stock price “closer to $45 would be appropriate” with such an approach, the analyst added.
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