The Trade Desk stock price target raised to $110 from $82 at CFRA

Investing.com - CFRA has raised its price target on The Trade Desk (NASDAQ:TTD) to $110.00 from $82.00 while maintaining a Buy rating on the advertising technology company. The company, currently valued at $37.08 billion, maintains impressive gross margins of 80.11% and has demonstrated strong revenue growth of 25.07% over the last twelve months. InvestingPro analysis suggests the stock is slightly overvalued at current levels.

The Trade Desk shares jumped about 15% in pre-market trading after S&P Global announced the company will join the S&P 500 index, replacing software maker Ansys (NASDAQ:ANSS), which is being acquired by Synopsys (NASDAQ:SNPS). The change will take effect Friday.

The stock has underperformed year-to-date, declining more than 35%, but CFRA believes the S&P 500 inclusion could generate improved sentiment and additional institutional investment flows as fund managers rebalance their portfolios.

CFRA noted The Trade Desk is slowly recovering from recent execution issues, including changes in engineering product processes and client-facing teams. The firm views growth expectations of 13%-15% year-over-year in the second half as attainable, with an anticipated acceleration to high-teens growth in 2026.

The higher price target reflects a revised price-to-earnings ratio of 53.7 times CFRA’s 2026 earnings per share estimate of $2.05, above peers given the firm’s growth outlook and closer to the middle of The Trade Desk’s historical range.

In other recent news, The Trade Desk has been included in the S&P 500 index, which is expected to be effective starting July 18, 2025. This inclusion is anticipated to increase the company’s visibility and liquidity, as index funds tracking the S&P 500 will need to purchase shares of The Trade Desk. Citi has raised its price target for The Trade Desk to $90 from $82, maintaining a Buy rating, citing the company’s strong market position as revealed in a recent media buyer survey. Evercore ISI also upgraded The Trade Desk’s stock rating from In Line to Outperform, noting an improved outlook for online advertising demand and recent product announcements addressing key concerns. Meanwhile, BMO Capital has reiterated its outperform rating with a $115 price target, despite potential competitive pressures from a new Amazon-Roku partnership. Benchmark has maintained its Hold rating on The Trade Desk, highlighting the company’s strong advertiser base and advantages in open internet reach compared to Amazon (NASDAQ:AMZN)’s DSP. These developments reflect significant milestones and analyst confidence in The Trade Desk’s market position and growth potential.

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