Shares of The Trade Desk (NASDAQ:TTD) dipped at the time of writing, which can be attributed to an analyst downgrade. Indeed, despite a price target upgrade from $57 to $69, New Street Research, led by analyst Daniel Salmon, cut The Trade Desk from Hold to Sell. Although New Street’s analysts maintain a positive outlook for the company’s long-term gross spend and appreciate the robustness of its data marketplace backed by increasing retail media partnerships, they express concerns about the economic tug-of-war with agencies and sell-side platforms (SSPs). Doubts regarding the company’s future identity strategy have also surfaced.
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The analysts predict impressive quarterly results but express skepticism about the potential of near-term estimate revisions to bolster the recent expansion in multiples. As the countdown to Google Chrome’s third-party cookies phase-out begins, they anticipate a looming overhang for TTD and the entire programmatic ecosystem. Furthermore, amid the evolving competitive landscape among agencies and SSPs, they foresee potential impacts on TTD’s major clients’ spending.
What is the Target Price for TTD Stock?
Overall, analysts have a Moderate Buy consensus rating on TTD stock based on 15 Buys, four Holds, and two Sells assigned in the past three months, as indicated by the graphic above. Nevertheless, the average price target of $80 per share implies 8.88% downside risk.
