Piper says Trade Desk remains top large cap idea despite recent outperformance

Piper Sandler continues to view Trade Desk as its top large cap idea even after the 30% year-to-date move in the stock, as the firm has confidence that the company can sustain its 20%-plus year-over-year growth rate over a multi-year period. Specifically, Piper thinks the recent partnership announcements — Netflix (NFLX), Disney+ (DIS), Roku (ROKU), etc. — leads to a strong market next year, driving additional spend into CTV. The Netflix opportunity alone could drive a low to mid-single digit spend uplift in 2025, the firm says. On a more near-term basis, its digital ad checks point to accelerating outperformance for Trade Desk relative to the broader market, as it appears incremental spend is going to CTV. Piper has an Overweight rating on the shares with a price target of $110.