Trade Desk stock holds $90 target post Q1 beat, Evercore stays In Line

On Friday, Evercore ISI maintained a steady outlook on The Trade Desk (NASDAQ:TTD) stock, reiterating an In Line rating and a $90.00 price target. According to InvestingPro data, the stock is currently trading slightly below its Fair Value, with analyst targets ranging from $39 to $145. The firm’s analysts acknowledged The Trade Desk’s strong first-quarter performance, which surpassed expectations, but cautioned that the company still needs time to rebuild its track record after recent disruptions.

The Trade Desk reported a 25% year-over-year increase in Q1 revenue, reaching $616 million, which was 7% higher than the Street’s expectations. The company’s EBITDA was particularly impressive, coming in at $208 million—40% above the Street’s forecast. InvestingPro data shows the company maintains an impressive 80.11% gross profit margin and has generated $641.22 million in levered free cash flow over the last twelve months. For the second quarter, The Trade Desk guided a revenue of $682 million, aligning with consensus estimates, and projected an EBITDA of $259 million, slightly above the expected $256 million.

Despite two previous quarters of significant deceleration and an unusual guidance miss, The Trade Desk appears to be regaining its momentum. InvestingPro analysis reveals the company maintains a GREAT financial health score of 3.14, with strong metrics across growth, profitability, and cash flow. Additional insights and 16+ ProTips are available for subscribers. The recent quarter’s results showed an acceleration in revenue growth against a tougher comparison and an increase in EBITDA margin year over year.

Evercore ISI’s commentary highlighted the resilience and effectiveness of The Trade Desk’s leadership and staff, which allowed for a quick rebound in the first quarter. However, the firm also noted that it may take additional time for The Trade Desk to fully re-establish its reputation and that its prior valuation range might be out of reach for now. The analysts pointed out that macroeconomic headwinds and industry changes could still pose risks to the company’s progress.

The report also addressed ongoing concerns in the industry, including competitive pressures from Amazon (NASDAQ:AMZN)’s Demand-Side Platform (DSP), potential friction with agencies, and execution issues related to the rollout of Kokai. Despite these challenges, InvestingPro data shows The Trade Desk holds more cash than debt on its balance sheet and maintains sufficient liquidity to meet its short-term obligations. While The Trade Desk’s Q1 performance has addressed some of these challenges, particularly with Kokai, Evercore ISI suggests that the other issues remain partly unresolved.

In other recent news, The Trade Desk reported strong financial results for the first quarter of 2025, significantly surpassing market expectations. The company achieved earnings per share (EPS) of $0.33, exceeding the forecasted $0.25, while its revenue reached $616 million, surpassing the anticipated $576.07 million. The Trade Desk’s revenue saw a substantial year-over-year increase of 25%, highlighting the company’s robust performance in the digital advertising market. The company maintains a strong cash position with $1.7 billion in cash and equivalents and no debt. Additionally, The Trade Desk projects Q2 2025 revenue of $682 million, representing a 17% year-over-year growth. Analysts from Susquehanna noted the company’s strong start to the year, while RBC analysts inquired about the competitive landscape, particularly concerning Amazon. The Trade Desk’s continued focus on innovations, such as the Kokai platform upgrade and strategic initiatives like OpenPath, is expected to contribute to its future growth.

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