Wedbush bullish on Trade Desk, initiates with an Outperform

As previously reported, Wedbush analyst Scott Devitt initiated coverage of Trade Desk with an Outperform rating and $110 price target. The firm sees multiple drivers to support sustainable, 20%-plus topline growth, including the ongoing shift to programmatic CTV advertising from linear TV, offsite retail media growth, and international expansion supported by recent investments to increase share outside the U.S. Near-term, Wedbush sees a number of catalysts that could drive upside to estimates, including tailwinds from U.S. political spend in the second half of 2024 and the rollout of recent CTV partnerships with key publishers. The firm’s estimates for 2024 and 2025 revenue are 1% and 3% above consensus, respectively, and it expects the company will sustain a 22% CAGR over the next four years.