Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - The Trade Desk (NASDAQ:TTD) was downgraded by Jefferies from Buy to Hold with its price target slashed to $50.00 from $100.00. The stock has declined nearly 40% in the past week alone, with InvestingPro data showing the shares are currently trading at 65x earnings.
Jefferies cited concerns about The Trade Desk’s long-term revenue growth potential and limited upside to the company’s valuation multiple as key factors behind the downgrade.
The firm pointed to a significant deceleration in revenue growth during the second quarter, when growth slowed to 19% year-over-year compared to 25% in the first quarter.
Jefferies also noted The Trade Desk’s third-quarter revenue guidance of 14%+ was concerning, especially considering other advertising companies had reported generally solid results.
Following the downgrade, Jefferies lowered its fiscal year 2025 and 2026 adjusted EBITDA estimates for The Trade Desk by 1% and 6% respectively, with the new $50 price target implying a multiple of 17 times FY26 EBITDA.
In other recent news, The Trade Desk has seen a series of developments concerning its financial outlook and analyst ratings. CFRA has lowered its price target for the company to $72.00 from $110.00, while maintaining a Buy rating due to growth concerns and leadership changes. Additionally, CFRA adjusted its earnings per share estimates for 2025 and 2026, with a new estimate for 2027. BTIG downgraded The Trade Desk from Buy to Neutral after the company’s second-quarter earnings report, expressing concerns about its growth trajectory and the effectiveness of the Kokai platform. Meanwhile, Benchmark maintained a Hold rating on The Trade Desk, citing potential challenges from tariff pressures that could impact revenue. Truist Securities reiterated its Buy rating with a $100.00 price target, despite the company’s quarterly results not meeting investor expectations. In contrast, BofA Securities downgraded The Trade Desk to Underperform and reduced its price target to $55.00, following a missed guidance during the fourth quarter of 2024, raising questions about competitive pressures and sustained growth. These recent developments reflect varying levels of confidence among analysts regarding The Trade Desk’s future performance.
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