Taboola.com and PubMatic Get Downgraded By Analyst Who Considers The Trade Desk Better Positioned In AdTech Space - PubMatic (NASDAQ:PUBM), Taboola.com (NASDAQ:TBLA), Trade Desk (NASDAQ:TTD)

To add Benzinga News as your preferred source on Google, click here.

Ahead of AdTech prints, KeyBanc analyst Justin Patterson lowered estimates across three stocks, downgraded Taboola.com Ltd (NASDAQ:TBLA) and PubMatic, Inc (NASDAQ:PUBM) to Sector Weight, and lowered his The Trade Desk, Inc (NASDAQ:TTD) price target from $55 to $52.
He believed that the industry had entered into a modest ad recession, where the combination of tighter budgets, less online time, and inflation and FX headwinds created elevated pressure on companies.
He viewed TBLA and PUBM as more exposed to these pressures given regional and channel mix and have lowered estimates materially below consensus.
Conversely, he viewed Overweight-rated TTD as better positioned for this period due to a mix of high growth channels like CTV, retail media, and political spend contributions in 4Q22E.
Price Action: TTD shares traded higher by 0.90% at $45.41 on the last check Monday.

To add Benzinga News as your preferred source on Google, click here.