4 TradeDesk Analysts On Q2 Earnings: Profitable Growth Remains A Hallmark

Zinger Key Points
  • Trade Desk reported strong results, despite a challenging macro environment.
  • The company "did not see the same headwinds" as peers, an analyst noted.

Trade Desk Inc. TTD reported its second-quarter revenues ahead of expectations and guided to upbeat sales in the third quarter.

Needham On Trade Desk

Analyst Laura Martin maintained a Buy rating while raising the price target from $55 to $65.

Trade Desk reported quarterly revenues of $377 million, up 35% year-on-year and 4% higher than the Needham estimate, Martin said in a note. “The 3 other Open Internet companies we cover that reported yesterday showed negative or low positive y/y rev growth for 2Q22 compared to TTD's 35%,” she added.

The company’s third-quarter revenue projection was “by far the highest guidance of the Walled Gardens and Open Internet companies that have reported 2Q22 so far,” the analyst further mentioned.

Check out other analyst stock ratings.

KeyBanc Capital Markets On Trade Desk

Analyst Justin Patterson reiterated an Overweight rating, while raising the price target from $52 to $70.

“The Trade Desk's results showed no meaningful macro slowdown and arguably inflections with respect to long-term relationships,” Patterson said in a note.

The analyst raised the revenue and EBITDA estimates for 2022, 2023 and 2024 to reflect the company’s “durable revenue growth, multiple growth drivers, and best-in-class margins.”

RBC Capital Markets On Trade Desk

Analyst Matthew Swanson reiterated an Outperform rating, while raising the price target from $75 to $80.

“The Trade Desk delivered strong results overcoming a challenging macro-environment to deliver upside to virtually all consensus metrics,” Swanson wrote in a note. “Profitable growth remains a hallmark as broad-based strength across the Americas offset any pockets of macro weakness as Q3 guidance goes higher, but remains conservative,” he added.

Raymond James On Trade Desk

Analyst Andrew Marok reiterated a Market Perform rating for the company.

Trade Desk’s quarterly results were “driven by continued CTV momentum, largely undeterred by macro conditions,” Marok said.

“The company’s 3Q guide was also ahead of expectations, as TTD did not see the same headwinds from the spot market cited by other companies. Amidst a challenging macro backdrop causing uneven performance across the space, TTD has been able to capitalize on the trend of advertisers seeking efficient and measurable spend to gain share,” the analyst added.

TTD Price Action: Shares of Trade Desk had jumped 32.05% to $71.96 at the time of publication Wednesday.

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Posted In: Analyst ColorEarningsNewsPrice TargetReiterationAnalyst RatingsMoversTrading IdeasAndrew MarokJustin PattersonKeyBanc Capital MarketsLaura MartinMatthew SwansonNeedhamRaymond JamesRBC Capital Markets
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