The Trade Desk stock price target lowered to $90 by Stifel on tariff pressures

Investing.com - Stifel has reduced its price target on The Trade Desk (NASDAQ:TTD) to $90.00 from $95.00 while maintaining a Buy rating on the advertising technology company. The stock, currently trading at $88.33, sits between analysts’ targets ranging from $47 to $135, with InvestingPro data showing it trading at a P/E ratio of 104.8x.

The Trade Desk reported second-quarter results that exceeded Wall Street’s formal estimates but fell short of heightened expectations following strong results from Meta (NASDAQ:META), Google (NASDAQ:GOOGL), and Reddit. The company’s third-quarter outlook aligned with market expectations, which Stifel identified as a significant factor in the after-hours stock movement. InvestingPro data reveals the company maintains robust financials with an impressive 80.11% gross margin and 25.07% revenue growth over the last twelve months.

The company also announced a Chief Financial Officer transition, which Stifel noted could negatively impact investor sentiment in the near term.

Stifel attributed The Trade Desk’s lighter-than-expected second-quarter performance primarily to tariff pressures affecting advertising budgets, particularly in consumer packaged goods and automotive sectors, rather than competitive threats from Amazon (NASDAQ:AMZN)’s demand-side platform.

Despite these challenges, Stifel continues to view The Trade Desk as "the best exposure to CTV" (connected TV), supporting its decision to maintain a Buy rating despite the price target reduction.

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. This transition follows the departure of Laura Schenkein, who has held finance leadership roles at the company for over a decade. Meanwhile, Evercore ISI has adjusted its price target for The Trade Desk to $80, down from $90, while maintaining an Outperform rating. The adjustment comes after the company’s second-quarter earnings results, which did not meet investor expectations for a substantial earnings beat or a return to over 20% top-line growth. On a positive note, BTIG has raised its price target for The Trade Desk to $97, citing strong adoption of the company’s Kokai platform and a stabilizing digital advertising market. Evercore ISI also reiterated its Outperform rating, expressing optimism about the potential revenue growth driven by the Kokai and OpenPath platforms. These developments indicate a mixed outlook for The Trade Desk, with differing analyst perspectives on the company’s future performance.

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