Analysts at Oppenheimer hiked their price target on Trade Desk Inc (NASDAQ:TTD)’s shares to $80 from $75 on “full-funnel return on investment benefits” driving share gains.
There’s plenty of upside as Trade Desk shares currently trade for around $63.38 on the Nasdaq.
The analysts, who have an Outperform rating on the advertising technology company, noted that Trade Desk has been aided immeasurably by shopper marketing and Connected TV (CTV) ads on its platform.
A tectonic shift has completely flipped the ad industry on its head over the past decade. In 2000, 90 cents of every ad dollar went into TV and print marketers. Now advertisers spend billions of dollars trying to grab consumers’ attention online and Trade Desk has tapped into that zeitgeist.
The Trade Desk runs a highly successful “stock exchange” for digital ads and Forbes estimated that marketers spent a record $4.2 billion on its platform in 2021 despite the pandemic.
“First quarter growth of over 21% year-over-year, well ahead of more than 15% guidance, implying 16 basis points share gain vesrus 4Q's 9 basis points, as advertisers increasingly focus on TTD's full-funnel ROI benefits,” wrote Oppenheimer’s analysts.
Trade Desk reported 1Q net income of $9 million, or $0.02 a share, whereas it posted a net loss of $15 million, or $0.03 cents a share, in the comparable quarter in 2022. Analysts were expecting an $0.08 loss per share on a GAAP basis.
Oppenheimer noted that Trade Desk had the “best-in-class DSP ad tools” and exposure to the "fastest-growing parts of digital advertising, which include CTV and retail media."
They called out the company’s CTV strength in Europe and Asia, with international share of revenue growing to 12% in the first quarter from 10% in the fourth quarter.
Trade Desk's revenue increased to $383 million from $315 million during the quarter.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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