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Investing.com - Evercore ISI has reiterated an Outperform rating on The Trade Desk (NASDAQ:TTD) with a price target of $90.00, slightly above the current trading price of $89.54, ahead of the company’s second-quarter earnings report. According to InvestingPro data, TTD maintains a "GREAT" financial health score, with strong profitability metrics and robust cash flow generation.
The research firm expects The Trade Desk to deliver better-than-expected Q2 results, citing continued penetration of the company’s Kokai and OpenPath platforms. Evercore ISI believes these technologies will likely drive sequential take rate expansion in Q2, providing a high single-digit percentage tailwind to year-over-year revenue growth. The company has already demonstrated strong momentum, with revenue growing 25.07% over the last twelve months and maintaining an impressive 80.11% gross margin.
Evercore ISI suggests The Trade Desk only needs high single-digit percentage spend growth to meet the Street’s Q2 revenue estimate of $686 million, representing 17% year-over-year and 11% quarter-over-quarter growth. The firm views this as a conservative bar despite acknowledging competitive pressure from Amazon (NASDAQ:AMZN)’s DSP, lower connected TV CPMs, and macro volatility earlier in the quarter.
The firm also believes the Street’s Q2 EBITDA forecast of $261 million, which is approximately 1% above management’s guidance of $259 million, should be achievable. This forecast implies an EBITDA margin of 37.5%, down 400 basis points year-over-year.
Separately, Edgewater Research commented that peak adoption of The Trade Desk’s Kokai platform adds to near-term catalysts, while noting that competitive concerns remain present but appear to be steady rather than accelerating. With earnings scheduled for August 7th, investors can access comprehensive analysis and 14 additional key insights through InvestingPro’s detailed research report, helping make informed decisions ahead of this crucial announcement.
In other recent news, The Trade Desk has seen multiple adjustments to its stock price targets from several investment firms. BTIG raised its price target to $97 from $79, maintaining a Buy rating, citing improvements in the digital advertising market and an optimistic outlook for the second quarter and the latter half of 2025. Similarly, Stifel increased its price target to $95 from $87, also maintaining a Buy rating, with expectations of favorable second-quarter earnings and improved guidance. Oppenheimer took a more bullish stance, raising its target to $110 from $80, driven by a positive tariff outlook and stable peer valuations.
Meanwhile, JMP Securities reaffirmed its Market Outperform rating with a $100 price target, although it noted a slowdown in organic revenue growth within the consumer packaged goods sector as a potential challenge. These developments come as The Trade Desk prepares to release its earnings report, with analysts showing varying degrees of optimism. The revisions in price targets suggest differing perspectives on the company’s performance and market conditions. Investors are closely watching these updates as they evaluate The Trade Desk’s potential in the evolving advertising landscape.
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