Analysts React To Trade Desk's Blowout Quarter

Trade Desk Inc TTD stock skyrocketed more than 36 percent on Friday after a huge second-quarter earnings beat and raised guidance. For traders wondering whether to stay along for the ride or take the money and run, here’s what several Wall Street analysts had to say about the stock.

Secular Growth

Macquarie analyst Tim Nollen said Trade Desk will continue to benefit from a secular trend in connected TV growth.

“We think TTD is on the early edge of a long growth curve, with a market-leading position in ad buying that is increasingly relying on quality data and more than ever needs an independent scaled platform,” Nollen wrote in a note.

Stifel analyst John Egbert said Trade Desk is riding multiple waves of secular growth.

“The Trade Desk remains well-positioned as an independent digital ad buying platform with multiple growth tailwinds from innovative new products / features, continued international expansion, and rapid growth in emerging channels like connected TV, mobile display / video, and programmatic audio,” Egbert wrote.

Google’s GDPR Woes

Citigroup analyst Mark May said Next Wave has shown strong adoption and the majority of ad spend will be focused on new products by the end of 2018.

“In the face of increased regulation in Europe, data challenges FB had with Cambridge Analytica and GOOGL’s decision to limit how their DoubleClick ID can be used, we believe TTD is well-positioned within the ad-tech ecosystem to continue to gain share,” May wrote.

Nomura Instinet analyst Mark Kelley said platform improvements, minimal impact of GDPR, a changing TV landscape and Google deciding not to share DoubleClick IDs combined for a perfect storm for Trading Desk. “Results and guidance for the rest of the year were well ahead of guidance,” Kelley wrote.

RBC Capital Markets analyst Mark Mahaney said GDPR seems to have been a tailwind for Trade Desk.

“Fundamentals remain very strong for TTD, with multiple catalysts helping spur the business, from secular Programmatic advertising growth to Google GDPR issues and Connected TV growth,” Mahaney wrote.

Ratings And Price Targets

• Macquarie has an Outperform rating and $130 target.
• Citi has a Buy rating and $132 target.
• Nomura Instinet has a Neutral rating and $101 target.
• Stifel has a Buy rating and $130 target.
• RBC has an Outperform rating and $126 target.

At time of publication, the stock was trading around $127.49 per share.

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