Trade Desk downgraded at Jefferies, Street ‘overly optimistic’ on digital ads

As previously reported, Jefferies analyst James Heaney downgraded Trade Desk to Hold from Buy with a price target of $55, down from $65, as he took over lead coverage of the stock. In his view, the Street is "overly optimistic" on digital advertising growth in 2023 and 2024 and he views Trade Desk’s "best-in-class fundamentals" being offset by the stock’s "rich" valuation multiple. He lowered his FY23 revenue estimates across his coverage by 3%-7%, bringing his forecasts 5%-10% below consensus, Heaney noted.