Shares of The Trade Desk (TTD 1.20%) 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.
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.
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.
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.