The Trade Desk stock price target lowered by CFRA to $72 on growth concerns

Published 08/08/2025, 20:24
The Trade Desk stock price target lowered by CFRA to $72 on growth concerns

Investing.com - CFRA has reduced its price target on The Trade Desk (NASDAQ:TTD) to $72.00 from $110.00 while maintaining a Buy rating, citing concerns about decelerating growth and leadership changes. The stock, currently trading at a P/E ratio of 65x, sits within the broader analyst target range of $47-$135.

The research firm adjusted its earnings per share estimates to $1.77 from $1.81 for 2025 and to $2.13 from $2.05 for 2026, while initiating a 2027 EPS estimate of $2.39.

CFRA noted that The Trade Desk is positioned to benefit from several growth catalysts, including connected TV, international business expansion, and growing retail media opportunities, which should allow the company to outgrow the digital ad market by 1.5x-2.0x through 2027.

The firm acknowledged that relatively in-line second-quarter results, slowing growth in the second half of 2025, and the new CFO transition following other leadership changes will likely pressure shares in the near term.

Despite these challenges, CFRA believes The Trade Desk shares are now more attractively valued at a low 20x multiple based on 2027 EPS, with potential for growth acceleration again in 2026.

In other recent news, The Trade Desk has faced a series of analyst revisions following its recent earnings reports. The company reported slightly higher second-quarter 2025 results with in-line third-quarter guidance, which Truist Securities noted was not up to the usual expectations, yet they maintained a Buy rating with a $100 price target. RBC Capital also adjusted its price target for The Trade Desk to $90, citing solid results that nonetheless fell short of investor expectations, despite a revenue beat of 1.3%. Meanwhile, BTIG downgraded The Trade Desk from Buy to Neutral, expressing concerns over the company’s growth trajectory and the impact of the Kokai platform not materializing as expected. BofA Securities also downgraded the stock from Buy to Underperform, reducing its price target to $55 after the company missed guidance for the first time as a public entity. Benchmark maintained a Hold rating, pointing out potential challenges due to tariff pressures and a sequential drop in domestic billings. These developments highlight the varied analyst perspectives on The Trade Desk’s future performance amid recent financial disclosures.

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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