Why The Trade Desk (TTD) Is Advancing Today

The Trade Desk (TTD) is climbing 5.7% today after KeyBanc issued a bullish note on the name and slightly raised its price target on TTD stock. TTD’s platform is utilized by purchasers of digital ads.

KeyBanc’s Call on TTD

The bank expects TTD to get a lift from improvements in the overall ad market, and it predicted that the company’s fourth-quarter financial results would come in above analysts’ average estimates. KeyBanc increased its price target on the shares to $142 from $140.

A large array of computer screens and tech equipment representing the technology company’s self-service cloud-based platform.

Also importantly, the bank expects TTD to grow at a 20% annual clip going forward, driven by the expansion of a number of areas, including connected TV, audio, and retail media. These positive catalysts will also enable the company’s profit margins to climb significantly going forward, according to the bank. Finally, KeyBanc expects the company’s Q1 guidance to meet or exceed analysts’ average estimates.

The bank kept an Overweight rating on the shares.

More Information About TTD

The shares are currently trading at an elevated forward price-to-earnings ratio of 87.7. Meanwhile, analysts on average expect the company’s EPS to climb to $1.96 this year from $1.64 in 2024.

In the last month, the stock has climbed 5.4%, while it has fallen 3.9% in the last three months.

While we acknowledge the potential of TTD, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TTD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey