The Trade Desk stock price target lowered to $80 at Evercore ISI

Investing.com - Evercore ISI has reduced its price target on The Trade Desk (NASDAQ:TTD) to $80.00 from $90.00 while maintaining an Outperform rating on the advertising technology company. The stock, currently trading at $88.33, commands a market capitalization of $43.19 billion and trades at a P/E ratio of 104.8x. According to InvestingPro analysis, the stock appears slightly overvalued based on its proprietary Fair Value model.

The price target adjustment follows what Evercore ISI describes as "Beat and Bracket Q2 EPS results," which triggered a nearly 30% correction in the stock price. The firm noted that investors reacted negatively to the lack of a material earnings beat similar to Q1 and the absence of a return to 20%+ top-line growth. InvestingPro data shows The Trade Desk maintains strong fundamentals with an impressive gross profit margin of 80.11% and a "GREAT" overall financial health score of 3.17.

Evercore ISI identified several possible explanations for the performance, with the most convincing being The Trade Desk’s significant exposure to large brand advertisers in the auto and consumer packaged goods sectors, which represent approximately 30% of the company’s revenue and are experiencing weakness and uncertainty.

Other potential factors cited include demand being pulled forward into Q1 due to the accelerated rollout of the Kokai operating system, increased friction with agency partners, and growing competition from Amazon (NASDAQ:AMZN)’s demand-side platform.

Despite these challenges, Evercore ISI continues to believe The Trade Desk is positioned to deliver a recovery to 20%+ revenue growth in 2026, driven by the full Kokai rollout, scaling partnerships with Netflix (NASDAQ:NFLX), Roku (NASDAQ:ROKU) and Spotify (NYSE:SPOT), and increased contribution from faster-growing retail media and international markets. The company has already demonstrated strong growth potential with a 25.07% revenue increase in the last twelve months. Discover more insights about TTD’s growth prospects and 13 additional key metrics with a InvestingPro subscription, including exclusive access to the comprehensive Pro Research Report.

In other recent news, The Trade Desk has announced a leadership change with Alex Kayyal stepping in as the new Chief Financial Officer, effective August 21, following Laura Schenkein’s departure. Kayyal will continue to serve on the company’s board of directors while taking on his new role. Meanwhile, several analyst firms have expressed optimism about The Trade Desk’s future performance. Evercore ISI reiterated an Outperform rating, anticipating better-than-expected second-quarter results due to the company’s Kokai and OpenPath platforms. BTIG raised its price target for The Trade Desk to $97, maintaining a Buy rating, and highlighted an improving digital advertising market. Similarly, Oppenheimer increased its price target to $110, citing a favorable tariff outlook and dismissing potential impacts from Amazon DSP. These developments suggest a positive sentiment among analysts regarding The Trade Desk’s strategic direction and market position.

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