Analyst Matthew Cost from Morgan Stanley maintained a Buy rating on Trade Desk and keeping the price target at $80.00.
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Matthew Cost has given his Buy rating due to a combination of factors that highlight both the strengths and potential opportunities for Trade Desk. Despite the company’s third-quarter guidance being lower than expected, the strong performance in the second quarter, particularly with the adoption of the Kokai platform, demonstrates significant growth potential. Kokai’s adoption has led to increased spending from customers and improved campaign performance, indicating the platform’s effectiveness.
Cost also notes that while there are macroeconomic uncertainties and potential headwinds, these could be temporary and might position Trade Desk to outperform expectations in the future. The company’s inclusion in the S&P 500 has set high expectations, but the ongoing growth in retail media and connected TV (CTV) sectors could drive further success. Overall, the combination of strategic positioning and potential for overcoming current challenges supports the Buy rating.
Cost covers the Communication Services sector, focusing on stocks such as AppLovin, Trade Desk, and Playtika Holding. According to TipRanks, Cost has an average return of 8.7% and a 59.04% success rate on recommended stocks.