Citi maintains $82 target on The Trade Desk stock, reiterates Buy

On Tuesday, Citi reaffirmed its confidence in The Trade Desk (NASDAQ:TTD), a digital advertising company with a $36.31 billion market cap, maintaining a steadfast Buy rating and an $82.00 price target. According to InvestingPro data, the company demonstrates robust financial health with a "GREAT" overall score, supported by strong revenue growth of 25% in the last twelve months. Following last week’s Programmatic I/O conference, analyst commentary from Citi highlighted the event as incrementally positive for the company. The conference, despite not being flawless, offered supportive insights for The Trade Desk’s business outlook.

The analysis also drew attention to significant themes and data from the recent Upfronts, which were generally favorable for Connected TV (CTV) and, by extension, The Trade Desk. These industry gatherings showcased a continued trend towards the adoption of CTV within total television spending and a growing preference for decisioned programmatic within the CTV space. The company’s strong position is reflected in its impressive 80% gross profit margin and solid cash flow generation, as revealed in InvestingPro’s detailed financial analysis, which includes 16 additional key insights about the company’s performance.

Citi’s assessment indicated that concerns over Amazon (NASDAQ:AMZN) DSP significantly impacting The Trade Desk’s budgets in the second half of 2025 might be overblown. The analyst observed that while Amazon possesses notable strengths, The Trade Desk does as well. It appears that funds allocated to Amazon DSP are primarily being redirected from existing Amazon budgets rather than cutting into The Trade Desk’s share.

Despite the positive outlook, feedback from Kokai acknowledged that there are still issues that The Trade Desk needs to address. Moreover, the macroeconomic feedback presented a mixed picture, with the conference not placing much emphasis on it. Nonetheless, the overarching trend for CTV remains positive, reinforcing The Trade Desk’s position in the market.

Citi’s analysis suggests that The Trade Desk is well-positioned to continue capitalizing on the positive trends within the CTV landscape and the broader programmatic advertising sector. The reaffirmed price target and Buy rating reflect a belief in the company’s ongoing growth trajectory despite the varied industry challenges.

In other recent news, The Trade Desk’s first-quarter financial results have surpassed expectations, with revenue and adjusted EBITDA showing significant improvement. This positive outcome is largely attributed to the adoption of the company’s Kokai platform, which has been well-received by clients. Analysts from various firms have responded to these developments with adjusted price targets. Cantor Fitzgerald increased its target to $71, citing strong execution and a 7% revenue beat, while Truist Securities raised its target to $100, highlighting the company’s resilience and improved sales execution. Piper Sandler also adjusted its target to $65, noting a positive shift in performance despite competitive pressures. KeyBanc Capital Markets raised their target to $80, emphasizing the impact of Kokai on advertiser performance and potential long-term growth. Despite these optimistic assessments, some analysts maintain a cautious outlook due to valuation concerns and macroeconomic uncertainties. The Trade Desk continues to monitor developments in key sectors like automotive and consumer packaged goods as it navigates these challenges.

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