Trade Desk (TTD) Price Target Raised 25% on Stellar Q4 Earnings

Truist Securities's Youssef Squali raised their price target on Trade Desk (NASDAQ: TTD) by 25% from $80 to $100 on 2024/02/16. The analyst maintained their Strong Buy rating on the stock.

Squali increased their price target after seeing Trade Desk's Q4 and FY 2023 earnings report, dated 2024/02/15, because of the quarter's strong results and management's above-consensus guidance. The analyst highlighted the company's exceptional execution in a volatile digital ad environment, emphasizing market share gains driven by factors such as Connected TV's rapid adoption and the growth of ad-supported streaming services.

Trade Desk's financial performance for Q4 2023 showcased significant growth compared to the previous year, with key metrics including an EPS of $0.41 (up 78.9%), revenue of $606 million (up 23.4%), and adjusted EBITDA of $284 million (up 15.9%). The company also repurchased $220 million in stock during the quarter. For FY 2023, Trade Desk reported an EPS of $1.26 (up 21.2%), revenue of $1.946 billion (up 23.3%), and adjusted EBITDA of $772 million (up 15.6%), along with stock repurchases totaling $647 million. Additionally, Trade Desk had $53 million available for stock repurchases at the end of 2023.

Looking ahead to Q1 2024, Trade Desk's management provided guidance of at least $478 million in revenue and an adjusted EBITDA of $130 million. CEO Jeff Green expressed optimism about the company's performance, noting strong revenue growth and record platform spend in 2023. Green highlighted Trade Desk's profitability and cash flow generation, enabling ongoing innovation in the digital advertising space, including the introduction of the Kokai platform.

Following Squali's update, other analysts also revised their price targets for Trade Desk on 2024/02/16. Susquehanna's Shyam Patil raised the price target by 46.7% to $110, maintaining a Strong Buy rating. Benchmark's Mark Zgutowicz raised the target by 31.3% to $42, with a Strong Sell rating. Stifel Nicolaus's Mark Kelley increased the target by 25% to $100, also maintaining a Strong Buy rating.

Currently, 90.9% of top-rated analysts view Trade Desk as a Strong Buy or Buy, with no Hold recommendations and 9.1% suggesting selling the stock. The consensus forecast anticipates TTD's next yearly EPS to reach $0.53, reflecting a 42.9% increase year-over-year.

Since Trade Desk's latest quarterly report on 2024/02/15, the stock price has surged by 17.5%. Year-over-year, TTD has seen a notable 41% increase, outperforming the S&P 500's 22.4% growth during the same period.

Youssef Squali, a highly ranked analyst specializing in Communication Services and Technology sectors, has demonstrated a strong track record on WallStreetZen, with an average return of 18.7% and a 63.1% win rate.

Trade Desk, Inc. continues to operate as a technology company offering a self-service cloud-based platform for digital advertising campaigns across various formats and channels. The company's recent financial performance and strategic focus on innovation in the digital ad space have garnered positive attention from analysts, underpinning its Strong Buy ratings and price target revisions.

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