Shares of The Trade Desk (TTD) gained 1.6% in Thursday’s extended trading session after it announced the expansion of its partnership with NBCUniversal. The technology company provides a platform for advertising buyers in the United States, Europe and Asia.
With this deal, NBCUniversal’s Peacock service will be added to Trade Desk’s CTV platform. Also, clients will have access to Peacock video on-demand inventory on The Trade Desk, including NBC Sports, NBC and Sky News, NBC Next-Day Prime and more.
The deal comes at the time when viewers are shifting viewing preference to streaming platforms and advertisers see this as an opportunity to improve the TV advertising experience. (See Trade Desk stock charts on TipRanks)
The Chief Revenue Officer of Trade Desk, Tim Sims, said, “CTV is one of the industry’s fastest-growing channels, because marketers get to apply data-driven precision to their massive TV campaigns for the first time. The addition of Peacock to our CTV advertising options represents the kind of premium content, at scale, that our clients are demanding.”
Wall Street’s Take
Recently, Needham analyst Laura Martin assigned a Buy rating on the stock with a price target of $100 (downside potential of 5.2%)
Martin said, “TTD is the largest demand side platform (ie, buyer of ads) in the “Open Internet” at $4B-$5B of total ad spending on its platform in 2021 (representing about 10% of total Open Internet ad spending). TTD is data-driven and as ad budgets rebound from 2020’s depressed levels, advertising ROIs are more in focus and TTD’s data layer helps ad agencies and brands determine how to spend ad dollars in the highest ROI way.”
Overall, the stock has a Strong Buy consensus rating based on 11 Buys and 2 Holds. The average Trade Desk price target of $99.09 implies 6.1% downside potential to current levels.
Smart Score
According to the TipRanks’ Smart Score rating system, Trade Desk gets a 7 out of 10, which indicates that the stock is likely to perform in line with market averages.
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