On Thursday, Piper Sandler demonstrated confidence in The Trade Desk (NASDAQ:TTD) shares by increasing the price target to $110 from the previous $105, while maintaining an Overweight rating.
The firm's positive outlook is driven by The Trade Desk's consistent performance, especially in the Connected TV (CTV) sector, which continues to be the company's fastest-growing channel.
The Trade Desk has been actively forging and strengthening partnerships with major industry players such as Disney+, Roku (NASDAQ:ROKU), and NBCUniversal (NBCU). These collaborations are seen as evidence of The Trade Desk's growing influence and importance in the CTV landscape.
Piper Sandler's decision to raise the price target follows The Trade Desk's recent earnings announcement, which surpassed expectations and indicated a trend of continuous growth.
The firm's analysis points to The Trade Desk's position as a standout entity within the digital advertising space. With the company's consistent "beat and raise" pattern in its financial reporting, Piper Sandler believes that The Trade Desk should be considered a primary long-term investment in investors' portfolios.
InvestingPro Insights
In light of Piper Sandler's recent price target increase for The Trade Desk (NASDAQ:TTD), examining some key metrics and tips from InvestingPro can offer additional insights into the company's financial health and market position. The Trade Desk's market capitalization stands at a robust $42.04 billion, reflecting significant investor confidence. Despite a high P/E ratio of 236.34, which suggests a premium on earnings, the company boasts a remarkable gross profit margin of 81.21% for the last twelve months as of Q1 2023. This high margin indicates strong pricing power and operational efficiency within the digital advertising space.
Notably, The Trade Desk also holds the advantage of having more cash than debt on its balance sheet, providing financial flexibility and stability. This is complemented by a revenue growth of 23.34% over the last twelve months, showcasing the company's ability to expand its top line effectively. Additionally, The Trade Desk has demonstrated a strong return over the last three months, with a 20.63% price total return, aligning with Piper Sandler's optimistic view.
For investors seeking to delve deeper into The Trade Desk's potential, there are additional InvestingPro Tips available that can further inform investment decisions. For instance, analysts predict the company will be profitable this year, and it's worth noting that The Trade Desk does not pay a dividend, which could be a consideration for income-focused investors. To access more in-depth analysis and tips on The Trade Desk, including a total of 15 InvestingPro Tips, visit https://www.investing.com/pro/TTD. Remember to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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