Trade Desk Price Target Trimmed, Analyst Remains Bullish on Stock (TTD)

Trade Desk stock price (NASDAQ:TTD) is slightly higher this morning, up 0.45% despite Guggenheim analyst Michael Morris reducing the firm's price target on the stock to $50 from $55, while maintaining a Buy rating. The adjustment reflects a cautious optimism surrounding the ad-tech company's future performance.

Guggenheim's analyst suggests that shares are trading at a discount compared to peers, based on sales and OIBDA multiples. This situation presents a potentially attractive return for 2026 if The Trade Desk can outperform the consensus revenue growth estimate of 16% and demonstrate a sustainable competitive advantage. The analyst's perspective underscores the importance of the company's ability to not only meet but exceed market expectations in a rapidly evolving advertising technology landscape.

However, other firms have expressed concerns. BofA Securities, for instance, lowered its price target to $49, citing difficulties in justifying the company's valuation despite consistent double-digit revenue growth. This adjustment involved reducing the valuation multiple to approximately 18 times the projected 2026 EBITDA, down from about 20 times previously. The BofA Securities perspective suggests that while revenue growth is positive, the premium valuation assigned to The Trade Desk needs to be carefully considered.

Jefferies had previously downgraded The Trade Desk from Buy to Hold, significantly reducing the price target from $100 to $50, citing concerns over long-term revenue growth potential. This decision followed a deceleration in revenue growth during the second quarter, which fell to 19% year-over-year from 25% in the first quarter. The Jefferies downgrade highlights the sensitivity of market sentiment to fluctuations in revenue growth rates.

RBC Capital also adjusted its price target, reducing it from $100 to $90, while maintaining an Outperform rating, following solid quarterly results that did not fully meet investor expectations. Wedbush downgraded The Trade Desk to Neutral from Outperform, reducing the price target to $68 from $90, reflecting a more cautious near-term outlook.

The consensus appears to be cautiously optimistic, contingent upon The Trade Desk's capacity to exceed growth forecasts and strengthen its market position, despite the series of downward adjustments in price targets. The company's ability to navigate competitive pressures and demonstrate robust, sustainable growth will be crucial in determining what happens next. After a 70% decline in stock price over the past 12 months, TTD bulls will be hoping that 2026 reverses the trend.