Needham & Company Upgrades The Trade Desk (TTD) to Buy

Needham & Company analyst Laura Martin upgraded The Trade Desk (NASDAQ: TTD) from Hold to Buy with a price target of $325.00.

The analyst comments "We upgrade TTD to BUY (from HOLD) with a 12-month price target of $325/share for 3 reasons: 1) We calculate that US ad unit avails will fall by 10% as viewing hours move out of linear TV (with 30 ads/hour) to new SVOD services like Disney+ with zero ads, while GroupM projects that demand for US ad units will rise by 10% in 2020, including $10B of political ads; 2) 100% of TTD’s revenue is from advertising, and advertising growth is closed linked to economic strength, and economic strength is typically robust in a year when a President can be re-elected; and, 3) eMarketer projects US digital ad revenue at $150B in 2020, with FB, GOOGL and AMZN representing 70%. Rising regulatory and legislative scrutiny should distract senior executives at these Walled Gardens, which benefits TTD as the largest buyer of ads in the other 30% of the "open internet"."

For an analyst ratings summary and ratings history on The Trade Desk click here. For more ratings news on The Trade Desk click here.

Shares of The Trade Desk closed at $240.42 yesterday.

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