JMP reiterates Market Outperform rating on The Trade Desk stock amid CPG slowdown

Published 21/07/2025, 10:18
JMP reiterates Market Outperform rating on The Trade Desk stock amid CPG slowdown

Investing.com - JMP Securities maintained its Market Outperform rating and $100.00 price target on The Trade Desk (NASDAQ:TTD) on Monday. According to InvestingPro data, TTD currently trades at $80.21, with a market cap of $39.4 billion and impressive gross profit margins of 80%.

The firm cited slowing organic revenue growth in the consumer packaged goods (CPG) sector as a significant headwind for advertising growth. JMP’s tracking of 20 major CPG brands showed continued deceleration in organic revenue growth during the first quarter of 2025.

This trend creates challenges for companies exposed to brand advertising, particularly those in the open web advertising space. The Trade Desk is notably affected since Food and Drink represents its largest vertical, accounting for 18% of the company’s spend in 2024.

Despite these headwinds, JMP noted that The Trade Desk’s revenue guidance already reflects an 8-point deceleration in the second quarter of 2025 (7 points excluding political advertising).

The firm’s analysis suggests that The Trade Desk has already factored the slowdown in CPG advertising spend into its projections, supporting JMP’s decision to maintain its positive outlook on the stock.

In other recent news, The Trade Desk will be added to the S&P 500 Index, effective at the opening of trading on July 18. This inclusion is part of the index’s regular rebalancing and is expected to increase the company’s visibility to investors. In addition to this development, KeyBanc has raised its price target for The Trade Desk to $95, maintaining an Overweight rating. The firm forecasts revenue of at least $691 million and expects third-quarter guidance to reflect approximately $715 million in revenue.

BMO Capital has reiterated its Outperform rating with a $115 price target, addressing concerns about competition from Amazon (NASDAQ:AMZN) DSP. The firm views The Trade Desk’s Kokai platform as a significant advancement that could drive further ad spending. Meanwhile, CFRA has increased its price target to $110, maintaining a Buy rating, and anticipates growth expectations of 13%-15% year-over-year in the second half. The firm also notes that S&P 500 inclusion could lead to improved sentiment and additional institutional investment flows.

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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