Citizens Downgrades The Trade Desk (TTD) to Market Perform Amid Intensifying Competition
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: seekingalpha
- Rating Downgrade: Citizens downgraded The Trade Desk's investment rating from 'market outperform' to 'market perform' due to intensifying competition in the adtech sector, particularly from Amazon, indicating increased market challenges for TTD.
- Intensifying Competition: The research firm highlighted that demand-side platform (DSP) competition is escalating, with TTD's historical structural advantages eroding, especially as Amazon attracts advertisers with fees as low as 1%, further constraining TTD's market space.
- Emerging Competitors: While newer and smaller DSPs like Vibe.co are unlikely to materially impact TTD's business in the near term, they underscore a trend of advertisers experimenting with new DSP partners, posing potential threats to TTD's market share.
- Ad Market Pressure: Citizens also noted that open web advertising, excluding CTV and digital audio, remains under pressure as walled gardens capture a larger share of digital ad spending, which could further impact TTD's advertising revenue.
Analyst Views on TTD
Wall Street analysts forecast TTD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TTD is 59.68 USD with a low forecast of 39.00 USD and a high forecast of 90.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
25 Analyst Rating
15 Buy
9 Hold
1 Sell
Moderate Buy
Current: 36.820
Low
39.00
Averages
59.68
High
90.00
Current: 36.820
Low
39.00
Averages
59.68
High
90.00
About TTD
The Trade Desk, Inc. is a global advertising technology company. The Company offers a self-service, cloud-based ad-buying platform that empowers its clients to plan, manage, optimize and measure more expressive data-driven digital advertising campaigns. Its platform allows clients to execute integrated campaigns across ad formats and channels, including connected television (CTV) and other video, display, audio, and native, on a multitude of devices, such as televisions, streaming devices, mobile devices, computers and digital-out-of-home devices. Its platform’s integrations with inventory, publisher and data partners provide ad buyers reach and decisioning capabilities, and its enterprise application programming interfaces (APIs) enable its clients to customize and expand platform functionality. Its platform provides auto-optimization features that allow buyers to automate their campaigns and support them with computer-generated modeling and decision-making.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
