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Investing.com - Oppenheimer has raised its price target on The Trade Desk (NASDAQ:TTD) to $110.00 from $80.00 while maintaining an Outperform rating on the stock. The company, currently trading at $88.46 with a market capitalization of $43.25 billion, has demonstrated strong momentum with an 8.3% gain over the past week.
The firm cited a more favorable tariff outlook for the second half of 2025 and indicated it does not expect impact from Amazon (NASDAQ:AMZN) DSP. The revised target reflects both higher estimates and peer valuations. According to InvestingPro data, The Trade Desk maintains impressive fundamentals with an 80.1% gross profit margin and robust revenue growth of 25.1% over the last twelve months.
Oppenheimer is now projecting third-quarter revenue growth of 15% and fourth-quarter growth of 17%, up from previous estimates of 10% and 12% respectively. Excluding political advertising, this represents growth of 19% and 23% compared to 19% in the second quarter.
The firm noted that fourth-quarter comparisons become 4 percentage points easier versus the second quarter when excluding political advertising, due to widely discussed issues with the fourth-quarter 2024 Kokai roll-out.
The new price target assumes 35 times fiscal year 2026 EBITDA, representing a 55% discount to peers while growing fiscal year 2024-2026 EBITDA 25% slower, according to Oppenheimer.
In other recent news, The Trade Desk is set to announce its earnings, with KeyBanc projecting revenue of at least $691 million and providing guidance for approximately $715 million in revenue for the third quarter. Stifel has raised its price target for The Trade Desk to $95, maintaining a Buy rating, and expects the upcoming earnings report to show positive results. Additionally, KeyBanc has also increased its price target to $95, citing improved company execution and consistent performance. The Trade Desk will join the S&P 500 Index, a significant milestone for the company as it joins 500 leading companies representing a large portion of U.S. market capitalization. JMP Securities has maintained its Market Outperform rating with a $100 price target, noting challenges in the consumer packaged goods sector as a headwind for advertising growth. Meanwhile, BMO Capital reiterated an Outperform rating with a $115 price target, dismissing concerns about Amazon DSP competition as overstated. These developments reflect a mix of optimism and caution among analysts regarding The Trade Desk’s future performance.
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