Trade Desk initiated with a Sell at Redburn

Redburn analyst Bianca Dallal initiated coverage of Trade Desk with a Sell rating and $34 price target. The analyst thinks consensus expectations and market valuations are “too high” for Trade Desk. The firm worries that “evidence of the former will lead to compression in the latter.” Trade Desk already enjoys a 70% share in the 20% of the connected TV market it serves, with consensus projecting the capture of 65% of total connected TV industry growth by 2028, the analyst tells investors in a research note. Redburn says this assumption disregards the high proportion of direct publisher deals bypassing Trade Desk, while market growth expectations “could also prove ambitious if macroeconomic pressures manifest.”