The Trade Desk stock price target lowered to $75 at Guggenheim

Investing.com - Guggenheim has lowered its price target on The Trade Desk (NASDAQ:TTD) to $75.00 from $90.00 while maintaining a Buy rating on the advertising technology company. With a market capitalization of $43.2 billion, InvestingPro analysis suggests the stock is currently trading slightly above its Fair Value, with a P/E ratio of 104.8x.

The Trade Desk reported revenue growth of 19% in its most recent quarter, exceeding prior guidance and Street expectations. While management’s outlook implies a sequential slowdown to 14% reported growth and 18% ex-political growth for the third quarter, the company maintains impressive fundamentals with an 80.1% gross margin and healthy liquidity ratio of 1.81.

Guggenheim attributed the moderating growth to The Trade Desk’s relatively greater exposure to large brands in sectors like consumer packaged goods and automotive, which are typically less insulated from macroeconomic uncertainty including tariff concerns.

Connected TV (CTV) led the company’s underlying growth drivers, outpacing overall trends, while international channels grew faster than domestic ones. The adoption of Kokai, The Trade Desk’s platform upgrade, has now reached more than 70% compared to approximately two-thirds reported in the first quarter.

The Trade Desk has also updated its executive team by replacing its CFO and adding another experienced board member, while management remains confident in key growth drivers including CTV, retail media, international expansion, and its identity strategy. The company maintains a "GREAT" financial health score according to InvestingPro, which offers 12 additional investment tips and a comprehensive Pro Research Report for deeper analysis.

In other recent news, The Trade Desk reported second-quarter results that exceeded consensus estimates but did not meet higher buy-side expectations. Despite the revenue and EBITDA showing "decent upside," the company’s third-quarter guidance has disappointed some investors, indicating seasonal softness and revenue deceleration. Following these results, DA Davidson lowered its price target for The Trade Desk to $80, maintaining a Buy rating. Piper Sandler also adjusted its price target slightly downwards to $64, citing mixed financial outcomes. Meanwhile, TD Cowen raised its price target to $259, maintaining a Buy rating, after a quarter that exceeded expectations with bookings well above guidance. Conversely, MoffettNathanson downgraded the stock to Sell due to concerns over valuation and rising threats. Raymond (NSE:RYMD) James reiterated its Market Perform rating, reflecting the mixed results and future guidance. These developments highlight diverse analyst opinions on The Trade Desk’s financial health and future prospects.

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