The Trade Desk stock price target raised to $95 from $90 at KeyBanc

Investing.com - KeyBanc raised its price target on The Trade Desk (NASDAQ:TTD) to $95.00 from $90.00 on Thursday, while maintaining an Overweight rating on the advertising technology company’s stock. The company, currently valued at nearly $40 billion, has demonstrated strong momentum with a notable return over the past three months, according to InvestingPro data.

The investment firm expects The Trade Desk to report revenue of at least $691 million and issue third-quarter guidance for approximately $715 million in revenue. With the company maintaining an impressive 80% gross profit margin and demonstrating 25% year-over-year revenue growth, KeyBanc believes the company’s execution is back on track and expects management to continue its pattern of beating expectations while providing conservative guidance. Investors can access detailed analysis and 15+ additional insights through InvestingPro’s comprehensive research report.

Based on this outlook, KeyBanc raised its 2025-2026 revenue and EBITDA forecasts by approximately 1% each. The firm also introduced 2027 estimates projecting revenue of $4.0 billion and EBITDA of $1.69 billion.

The new price target reflects a 27.2x multiple on the 2027 estimated EV/EBITDA. KeyBanc suggests there is room for multiple expansion as concerns about execution and Amazon (NASDAQ:AMZN) competition diminish.

KeyBanc also noted the recent departure of executive Tim Sims from The Trade Desk and indicated it would seek clarity on the company’s plans for expanding senior leadership during the upcoming earnings call.

In other recent news, The Trade Desk has been in the spotlight with several notable developments. The company is set to join the S&P 500 index, replacing ANSYS (NASDAQ:ANSS), which is being acquired by Synopsys (NASDAQ:SNPS). This inclusion is expected to increase visibility and liquidity for The Trade Desk. On the earnings front, CFRA has raised its price target to $110, maintaining a Buy rating, and foresees growth expectations of 13%-15% year-over-year in the second half, with acceleration anticipated in 2026. BMO Capital reiterated its Outperform rating, highlighting the potential of the new Kokai platform despite a recent earnings miss.

Citi also raised its price target to $90, acknowledging The Trade Desk’s strong market position based on a recent survey of media buyers. Evercore ISI upgraded its rating to Outperform, citing improved online advertising demand and the company’s effective execution and product announcements. The firm noted the outlook for fiscal year 2025 appears achievable, with significant growth catalysts identified for 2026. Collectively, these developments underscore the dynamic environment in which The Trade Desk operates, with analysts expressing optimism about its future prospects.

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