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Wednesday, JMP analysts maintained a Market Outperform rating on The Trade Desk (NASDAQ:TTD) stock with a steady price target of $115.00. The reaffirmation comes despite The Trade Desk’s recent performance, where the company reported a miss in its 4Q24 guidance. This was the first time The Trade Desk did not meet its quarterly guidance in 33 quarters since becoming a public entity. The stock, currently trading at $58.84, near its 52-week low of $58.57, has seen a significant decline of nearly 50% year-to-date. According to InvestingPro analysis, the company appears undervalued based on its Fair Value calculations.
The analysts, led by Matthew Condon, delved into the factors they believe led to the 4Q24 shortfall. They concluded that the revised guidance from The Trade Desk is likely conservative. Despite recent challenges, InvestingPro data shows the company maintains strong fundamentals with a 25.63% revenue growth and a robust financial health score. The $29.19 billion market cap company continues to demonstrate potential for market share gains from competitors, particularly DV360.
The Trade Desk’s scale and independence were highlighted as key advantages by JMP analysts. These attributes facilitate the formation of unique data and inventory partnerships. Moreover, this independence allows The Trade Desk to offer exclusive solutions to its clients.
One such solution is The Trade Desk’s artificial intelligence forecasting product, which is anticipated to be released this quarter. This product is expected to bolster the company’s offerings and provide additional value to its customers.
As of now, The Trade Desk’s stock rating remains unchanged at Market Outperform, with JMP analysts underscoring the company’s strong position in the market despite the recent hiccup in its financial guidance.
In other recent news, The Trade Desk reported fourth-quarter revenues of $741 million, marking a 22.3% year-over-year increase, but falling short of its guidance of "at least $756 million" and consensus expectations of $759 million. The company’s EBITDA also missed expectations, coming in at $350 million compared to the guidance of "at least $363 million." Despite these shortfalls, The Trade Desk projects a 17% revenue growth for the upcoming quarter. Analyst firms have responded with varying outlooks. Truist Securities maintains a Buy rating with a $130 price target, highlighting the company’s solid fundamentals and growth potential in Connected TV and Retail Media. Meanwhile, Loop Capital and DA Davidson have lowered their price targets to $101 and $103, respectively, while maintaining Buy ratings. Both firms express confidence in the company’s long-term growth narrative despite recent earnings disappointments. Benchmark, however, maintains a Sell rating with a $57 price target, pointing to challenges with the Kokai platform and sales execution. Stifel also adjusted its price target down to $122 but keeps a Buy rating, emphasizing potential growth in the Connected TV sector.
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