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Trade Desk Stock Rises After Analyst Says It’s Time to Buy the Dip

Trade Desk shares are down about 50% this year.

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Dreamstime

Piper Sandler believes Trade Desk stock can do well even during a softening economic environment.

On Tuesday, analyst Matt Farrell initiated coverage of
Trade Desk
shares (ticker: TTD) with an Overweight rating and established a $60 stock price target for the ad-technology company.

The company provides ad buyers with a digital platform to create and manage their campaigns. Earlier this year, Trade Desk said it had reached an expanded advertising technology deal with
Walt Disney
(DIS).

It is “time to hit buy on
The Trade Desk,
” Farrell wrote. “We feel macro uncertainty will continue to be a risk, as TTD is not immune. However, we believe the company is well-positioned to outperform the broader environment.”

Trade Desk shares rose 3.1% to $45.51 in early trading on Tuesday.

Farrell says Trade Desk will benefit from the secular trend toward targeted digital video advertising, noting the company’s revenue is still expected to grow more than 30% this year.

“We feel the need for data-driven, programmatic targeting will only continue to play out,” he wrote. “Not only is a Trade Desk a leader today, but TTD is also continuing to push the industry forward.”

TradeDesk investors have had a difficult year as the market has grown more skeptical about longer-term growth stories. In its most recent reported quarter, the company also gave an outlook that fell short of the Wall Street consensus.

Trade Desk shares are down about 50% this year, compared with the 33% decline for the
Nasdaq Composite.

Write to Tae Kim at tae.kim@barrons.com

Credit: marketwatch.com

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