William Blair starts Trade Desk at Outperform on ‘substantial’ opportunity

William Blair initiated coverage of Trade Desk with an Outperform rating and no price target. Eventually, most or all of the $840B global advertising market will be digital, up from roughly 69% today, creating a “substantial” opportunity for Trade Desk, the analyst tells investors in a research note. The firm projects the company’s total revenue will grow about 23% in fiscal 2023 and forecasts its full year 2023 adjusted EBITDA margin will be about 40%. Blair likes Trade Desk’s “differentiated platform, high margin profile coupled with strong top-line growth.”