Gold prices just lower; monthly gains on track
Investing.com - RBC Capital lowered its price target on The Trade Desk (NASDAQ:TTD) to $90.00 from $100.00 on Friday, while maintaining an Outperform rating on the advertising technology company’s stock. According to InvestingPro data, analyst targets for TTD range from $47 to $135, with the stock currently showing signs of being overvalued despite its strong financial health score.
The price target reduction follows what RBC described as "solid results" that nonetheless fell short of elevated investor expectations. The Trade Desk delivered a revenue beat of 1.3%, which represented a significant step-down from the previous quarter’s 7.1% outperformance. The company maintains impressive fundamentals with an 80% gross margin and 25% year-over-year revenue growth, according to InvestingPro analysis.
The company reported positive adjusted EBITDA with a 39% margin, according to RBC Capital’s analysis. The firm noted that The Trade Desk is currently facing "company-specific headwinds" related to its enterprise install base, which is more susceptible to tariffs.
Despite these challenges, RBC highlighted several potential growth drivers that could build momentum into 2026, specifically mentioning connected TV (CTV), JBPs, and the company’s Kokai platform.
The price target adjustment was attributed to lowered estimates, though RBC maintained its Outperform rating, indicating continued confidence in The Trade Desk’s long-term prospects.
In other recent news, The Trade Desk reported a 19% revenue growth in its most recent quarter, surpassing previous guidance and market expectations. However, the company’s management projects a slowdown to 14% growth for the third quarter. TD Cowen raised its price target for The Trade Desk to $259, citing impressive quarterly bookings that exceeded the guidance range. Conversely, Guggenheim lowered its price target to $75, while maintaining a Buy rating, following the company’s positive revenue growth. MoffettNathanson downgraded the stock to Sell, reducing its price target significantly to $45, due to concerns over valuation and rising threats. Raymond (NSE:RYMD) James reiterated a Market Perform rating after mixed results that beat consensus estimates but did not meet higher buy-side expectations. DA Davidson also lowered its price target to $80, maintaining a Buy rating after acknowledging decent revenue and EBITDA results in the second quarter. These developments reflect a range of analyst perspectives on The Trade Desk’s financial outlook.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.