The Trade Desk price target lowered to $64 from $65 at Piper Sandler

Investing.com - Piper Sandler has lowered its price target on The Trade Desk (NASDAQ:TTD) stock to $64.00 from $65.00 while maintaining a Neutral rating on the advertising technology company. The company, currently valued at $43.19 billion, trades at a P/E ratio of 104.8x, reflecting high growth expectations according to InvestingPro data.

The adjustment follows what Piper Sandler described as a "mixed" second-quarter 2025 financial report that saw The Trade Desk’s results approximately 1% above Street consensus but below buy-side expectations of a mid-single-digit percentage beat.

The Trade Desk shares have declined more than 25% following the earnings release, reflecting investor disappointment with the quarterly performance.

Piper Sandler expressed concerns about competition from Amazon (NASDAQ:AMZN) and other companies in the digital advertising space, though the firm noted it remains unclear how significantly this competitive dynamic has affected The Trade Desk’s financial results.

Despite these challenges, Piper Sandler acknowledged positive aspects of The Trade Desk’s business model and its strategic position in the connected TV (CTV) advertising market, but cited "choppy" execution and mixed advertising industry checks as factors in maintaining its Neutral stance.

In other recent news, The Trade Desk reported second-quarter results that surpassed Wall Street’s formal estimates but did not meet heightened expectations set by strong performances from companies like Meta (NASDAQ:META) and Google (NASDAQ:GOOGL). Despite this, the company’s third-quarter outlook was in line with market expectations. Analysts at Stifel lowered their price target for The Trade Desk from $95 to $90, maintaining a Buy rating, while Evercore ISI adjusted their target from $90 to $80 but kept an Outperform rating. BTIG, on the other hand, raised its price target from $79 to $97, also maintaining a Buy rating, citing improved market conditions and adoption of The Trade Desk’s Kokai platform.

The company also announced a significant leadership change with Alex Kayyal stepping in as the new Chief Financial Officer, replacing Laura Schenkein. Kayyal will continue to serve on the board of directors while assuming his new role. Evercore ISI reiterated its Outperform rating before the earnings report, highlighting the potential revenue growth driven by The Trade Desk’s Kokai and OpenPath platforms. These developments point to a dynamic period for The Trade Desk as it navigates market expectations and strategic leadership changes.

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