UPDATE: Truist Securities Upgrades The Trade Desk (TTD) to Buy

Truist Securities analyst Youssef Squali upgraded The Trade Desk (NASDAQ: TTD) from Hold to Buy with a price target of $620.00 (down from $880.00) after 1Q21 results exceeded expectations on virtually all metrics, and the 2Q21 guide also cleared Street expectations. Net Revenues for 1Q21 were $219.8M (+37% y/y), ahead of the Street's $216.9M. Excluding political spend from 1Q20, revenue growth was ~42% y/y, an acceleration from 4Q20. Strength was broad-based with CTV growing +100% y/y and mgt noting green shoots emerging in Europe and APAC.

The analyst stated "While visibility beyond 3Q is somewhat clouded by the variability in the expected contribution to 4Q of new initiatives like CTV internationally, Solimar and Walmart, we believe the LT thesis around TTD being a primary beneficiary of secular growth in programmatic, in CTV and an alternative to the walled gardens remains intact. With a '21-26 5-year est. sales CAGR of ~30% and EBITDA margins of 40%+, we find the new valuation compelling".

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 $489.60 yesterday.

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