Market Overview

The Trade Desk Is A Leading Ad Tech Platform That Jefferies Recommends You Buy


Jefferies’ Brian Fitzgerald mentioned that Trade Desk Inc (NASDAQ: TTD) is a leading ad tech platform that is benefiting from the ongoing shift to programmatic advertising.

Fitzgerald initiated coverage of the company with a Buy rating and price target of $35.

Growth Drivers

The analyst believes that international expansion, omni-channel extension and increasing ad spend penetration are compelling growth drivers for Trade Desk.

“The Trade Desk’s self-service platform enables ad buyers to execute campaigns in a highly targeted manner. TTD is exclusively focused on the buy-side and generally sells direct to agencies,” Fitzgerald explained.

Global media ad spend is expected to increase to $591 billion in 2017, with $229 billion being generated digitally.

Within the digital space, programmatic processes account for 35 percent of banner display and video ad spending, which is expected to grow to 50 percent by 2019.

Profitable Company

“TTD’s solution allows its customers to integrate other systems including ad servers and reporting tools. Nearly 50 percent of clients have incorporated The Trade Desk’s APIs including their top clients,” the analyst noted.

Trade Desk has been profitable, generating positive net income since 2015, and Fitzgerald expects the company to be able to achieve 35 percent EBITDA margins in the longer term.

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Latest Ratings for TTD

Dec 2019UpgradesHoldBuy
Nov 2019MaintainsHold
Nov 2019Initiates Coverage OnOverweight

View More Analyst Ratings for TTD
View the Latest Analyst Ratings

Posted-In: Brian Fitzgerald JefferiesAnalyst Color Long Ideas Price Target Initiation Analyst Ratings Trading Ideas


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