Market Overview

3 Reasons Needham Upgraded Trade Desk

3 Reasons Needham Upgraded Trade Desk

The bullish case for Trade Desk Inc (NASDAQ: TTD), a provider of a technology platform for buyers of advertising, can be made for three reasons, according to Needham.

The Analyst

Needham analyst Laura Martin upgraded Trade Desk from Hold to Buy with a new $325 price target.

The Thesis

Trade Desk stands to benefit from three company and industry-wide catalysts, Martin wrote in the note.

First, Trade Desk offers investors direct exposure to ad spending growth as third-party data points to 84% of marketers planning to increase their investment spending in online video in 2020. Another 70% of marketers expect to increase their spend on social media networks and 63% expect to spend more advertising on podcasts.

Second, the value of each individual ad is rising, the analyst wrote. According to a GroupM whitepaper, total U.S. ad spending will increase by $20 billion in 2020 and total U.S. ad spending will total $240 billion. At the same time ad impressions will likely fall by 10% in 2020 which by default improves pricing power in 2020. Trade Desk is the largest buyer of ad units and takes a 20% revenue share of ad dollars spent on its platform.

Finally, Trade Desk could take advantage of "distracted" senior executives at social media companies who will be forced to pay more attention on regulatory and legislative pressures. The research firm estimates Trade Desk will end 2020 with $843 million of revenue on total ad spend of around $4.2 billion.

Price Action

Shares of Trade Desk trading up 3.03% at $247.62 at time of publication Friday.

Latest Ratings for TTD

Dec 2020RosenblattMaintainsNeutral
Nov 2020NeedhamMaintainsBuy
Nov 2020BerenbergInitiates Coverage OnBuy

View More Analyst Ratings for TTD
View the Latest Analyst Ratings


Related Articles (TTD)

View Comments and Join the Discussion!

Posted-In: ads Laura Martin marketing NeedhamAnalyst Color Upgrades Price Target Analyst Ratings Best of Benzinga

Latest Ratings

MRTXHC Wainwright & Co.Maintains257.0
NVDATruist SecuritiesMaintains672.0
BLKBMO CapitalMaintains715.0
BLKDeutsche BankMaintains838.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at