Trade Desk should be bought on recent selloff, says Piper Sandler

Piper Sandler thinks the recent selloff in Trade Desk is overdone heading into the Q2 earnings report. While the softer than expected YouTube results “are not a great data point” to start the earnings cycle, Trade Desk’s print is “now significantly de-risked,” as Piper’s biggest concern heading into the earnings announcement was that expectations had gotten ahead of themselves, the analyst tells investors in a research note. The firm’s checks coming out of Q2 pointed to “significant upside” for Trade Desk, with full-year spend expectations moving higher even as the broader digital ad market was reset lower. Piper recommends buying the shares on the pullback and keeps an Overweight rating on the name with a $110 price target.