BMO Capital reiterates Outperform rating on The Trade Desk stock

Published 15/07/2025, 15:14
BMO Capital reiterates Outperform rating on The Trade Desk stock

Investing.com - BMO Capital has reiterated its Outperform rating and $115.00 price target on The Trade Desk (NASDAQ:TTD), which currently trades at $82.77. According to InvestingPro data, the company maintains strong fundamentals with a "GREAT" financial health score and 25% revenue growth over the last twelve months.

The research firm believes investor concerns about Amazon (NASDAQ:AMZN) DSP taking market share from The Trade Desk are "overblown," citing room for multiple winners in what it describes as a massive $1 trillion digital advertising opportunity. The company’s solid financial position, with more cash than debt on its balance sheet and strong liquidity ratios, supports its competitive stance.

BMO Capital acknowledged that the Kokai learning curve may have been one of several factors contributing to The Trade Desk’s fourth-quarter 2024 miss.

Despite this setback, the firm views the new Kokai platform as a "step-function change" that simplifies the ad-buying process and should drive incremental ad spending to The Trade Desk over time.

BMO Capital has adjusted its second-half 2025 estimates to account for a longer Kokai adoption ramp and to better align with consensus expectations.

In other recent news, The Trade Desk has made headlines with its forthcoming inclusion in the S&P 500 index, replacing ANSYS (NASDAQ:ANSS), which is being acquired by Synopsys (NASDAQ:SNPS). This development is expected to increase the company’s visibility and liquidity, potentially attracting more institutional investment. CFRA has responded by raising its price target for The Trade Desk to $110, maintaining a Buy rating, and noting the company’s gradual recovery from recent execution issues. Citi also raised its price target to $90, highlighting The Trade Desk’s strong market position as revealed in a recent media buyer survey. Evercore ISI upgraded the stock from In Line to Outperform, citing improved online advertising demand and positive execution on recent product announcements. BMO Capital maintained its Outperform rating with a $115 price target, despite a new partnership between Amazon and Roku (NASDAQ:ROKU) that could affect The Trade Desk’s inventory share. These developments reflect a mix of optimism and caution among analysts regarding The Trade Desk’s future performance in the competitive digital advertising landscape.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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