The Trade Desk stock rating reiterated by Raymond James after mixed results

Published 08/08/2025, 13:36
The Trade Desk stock rating reiterated by Raymond James after mixed results

Investing.com - Raymond (NSE:RYMD) James has reiterated its Market Perform rating on The Trade Desk (NASDAQ:TTD), a $43.2 billion market cap advertising technology company with impressive 80% gross margins, following the company’s second-quarter results that beat consensus estimates but fell short of higher buy-side expectations.

The research firm maintained its rating after The Trade Desk’s third-quarter guidance also disappointed investors looking for stronger performance, reflecting seasonal softness and continued revenue deceleration. According to InvestingPro analysis, the stock appears slightly overvalued at current levels, despite maintaining robust 25% year-over-year revenue growth.

Despite these challenges, Raymond James noted positive developments including ongoing strength in connected TV (CTV) and deepening partnerships with leading streaming platforms, which it views as potential sources of sustained upside for the advertising technology company.

The firm highlighted that adoption of The Trade Desk’s Kokai platform continues to gain momentum, now representing more than 70% of platform spend, while management downplayed competitive threats by emphasizing its differentiated capabilities and objectivity.

Raymond James remains cautious, however, pointing out that this quarter’s performance marks the second stumble in three quarters, which combined with the announced CFO transition, may raise questions for investors in the near term.

In other recent news, The Trade Desk has reported its second-quarter results, showing revenue and EBITDA with "decent upside" according to DA Davidson. Despite this, several firms have adjusted their price targets for the company. DA Davidson lowered its target to $80 while maintaining a Buy rating, noting the positive revenue results. Piper Sandler also adjusted its target to $64 from $65, citing a mixed financial report that was slightly above consensus but below certain expectations. Stifel reduced its price target to $90, maintaining a Buy rating, and highlighted that The Trade Desk’s results exceeded Wall Street estimates but not the heightened expectations set by other tech giants. Evercore ISI also lowered its price target to $80, maintaining an Outperform rating, and pointed out investor disappointment over the absence of significant earnings growth. In leadership news, The Trade Desk announced Alex Kayyal as the new Chief Financial Officer, effective August 21, succeeding Laura Schenkein. Kayyal, who is already on the board of directors, will continue in that role while leading the company’s financial strategy.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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