The Trade Desk stock price target lowered to $80 by DA Davidson

Investing.com - DA Davidson has lowered its price target on The Trade Desk (NASDAQ:TTD), a $43.2 billion digital advertising company, to $80.00 from $92.00 while maintaining a Buy rating on the stock. According to InvestingPro data, the company trades at a P/E ratio of 104.8x, reflecting high growth expectations.

The price target reduction follows The Trade Desk’s second-quarter results, which showed "decent upside" on revenue and EBITDA, according to the research firm. The company maintains strong fundamentals, with InvestingPro analysis showing a "GREAT" financial health score and impressive revenue growth of 25% over the last twelve months.

Despite these positive elements, The Trade Desk provided guidance for the third quarter that merely aligned with consensus expectations, rather than exceeding them as has been typical for the company historically.

The firm also noted that a "surprise CFO change" contributed to investor concerns, helping to drive The Trade Desk shares down nearly 30% in after-hours trading following the announcement.

DA Davidson observed that The Trade Desk has rarely guided to just in-line or below Street consensus in its history, with the most recent instance occurring during its fourth-quarter 2024 earnings report.

In other recent news, The Trade Desk reported second-quarter results that exceeded Wall Street’s formal estimates but did not meet higher expectations set by strong performances from companies like Meta (NASDAQ:META), Google (NASDAQ:GOOGL), and Reddit. The company’s third-quarter outlook was in line with market expectations. Despite the earnings surpassing general forecasts, Piper Sandler described the financial report as "mixed" and adjusted its price target for The Trade Desk to $64, maintaining a Neutral rating. Stifel also lowered its price target to $90, citing tariff pressures, but kept a Buy rating on the company. Evercore ISI reduced its price target to $80, noting the absence of a significant earnings beat and a return to 20%+ top-line growth. Additionally, The Trade Desk announced Alex Kayyal as the new Chief Financial Officer, effective August 21, following Laura Schenkein’s departure. Kayyal, a current board member, will continue to serve in that capacity while assuming his new role. Evercore ISI had previously reiterated an Outperform rating for The Trade Desk, expecting better-than-anticipated Q2 results due to advancements in the company’s Kokai and OpenPath platforms.

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