In a report released today, Mark Zgutowicz from Rosenblatt Securities reiterated a Hold rating on Trade Desk Inc (TTD), with a price target of $163. The company’s shares closed on Friday at $198.02.
Zgutowicz noted:
“We have maintained a Neutral rating on TTD shares largely on valuation, however recent discussions with industry contacts suggest fundamental headwinds entering CY20E. Specifically, we expect both Google and Amazon will have competing CTV capabilities ready as early as 4Q19E, with contracted large volume deployments starting 1Q20E. Given TTD’s relatively open CTV runway to date, we expect CY20E headwinds relative to consensus expectations. Our new CY20E revenue of $809M compares to Factset consensus of $840M. We reiterate our Neutral rating and raise our price target from $142 to $163 (~18% downside from prior close) reflecting DCF assumptions below. Domestic strength likely tested in ‘20. Following weaker than (we) expected CY19 guidance, we lowered 2QE/CY19E revenue from $166.9M/$676.1M to $156.5M/ $656.1M, respectively.”
According to TipRanks.com, Zgutowicz is a 4-star analyst with an average return of 18.6% and a 55.6% success rate. Zgutowicz covers the Technology sector, focusing on stocks such as Spotify Technology SA, Pinterest Inc, and Wix.com Ltd.
Trade Desk Inc has an analyst consensus of Moderate Buy, with a price target consensus of $198.50.
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Based on Trade Desk Inc’s latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $10.15 million. In comparison, last year the company had a net profit of $9.07 million.
Based on the recent corporate insider activity of 85 insiders, corporate insider sentiment is negative on the stock.
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The Trade Desk, Inc. is a technology company, which engages in the provision of technology platform for advertising buyers. Its products include audio advertising, mobile advertising, native advertising, data management platform, cross-device targeting, and inventory and marketplaces.
