New Street downgrades Trade Desk to Sell on strategy questions

New Street downgraded Trade Desk to Sell from Neutral with a price target of $69, up from $57. The analyst sees Trade Desk shares trading down from recent highs, and then remaining range-bound as the market focuses more on evolving competitive dynamics, and the effectiveness of the company’s post-cookie identity strategy entering 2024. The firm remains bullish on the company’s long-term gross spend opportunity and says its data marketplace is growing more robust with the inclusion of more retail media partnerships. However, New Street remains cautious on the battle for economics with agencies and thinks questions remain on the outlook for Trade Desk’s identity strategy.