What happened
Shares of The Trade Desk (TTD 3.35%) are trading higher today, up by 9% as of 1:10 p.m. EST, after two Wall Street analysts increased their respective price targets on the stock. The tweaks to valuation estimates come ahead of The Trade Desk's third-quarter earnings release.
So what
Stifel analyst John Egbert reiterated a hold rating on The Trade Desk shares while increasing his price target from $420 to $500 to reflect "a more optimistic outlook" regarding the advertising technology company's recovery once the COVID-19 pandemic has passed. The analyst believes that The Trade Desk's risk/reward profile in the short term is less compelling compared to peers in the digital media sector.
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Oppenheimer analyst Brian Schwartz is more bullish, reiterating an outperform rating and boosting his price target from $530 to $610. Schwartz argues that The Trade Desk's Unified ID 2.0 framework will put it in a leadership position and help create an "enduring and enviable business model that grows rapidly with high EBITDA margins."
Unified ID 2.0 is an open-source, interoperable, and independently governed framework that hopes to replace traditional tracking cookies. The technology is gaining traction among ad tech platforms, adding media measurement giant Nielsen as a partner just earlier this week.
Now what
The Trade Desk is scheduled to report third-quarter earnings results tomorrow after the close. The company's outlook calls for revenue of $177 million to $181 million with adjusted EBITDA of at least $30 million. Analysts are modeling for $180.8 million in sales.
