Oppenheimer: Trade Desk Positioned For 30% Revenue, EBITDA, FCF Growth

Trade Desk Inc (NASDAQ: TTD) held an investor meeting Wednesday at which it provided greater transparency into financials, increased insight into its connected TV and platform technologies and details on trategies to leverage end-market demand shifts, according to Oppenheimer.

The Analyst

Oppenheimer’s Brian Schwartz maintained an Outperform rating on Trade Desk and raised the price target from $180 to $210.

The Thesis

The meeting with management indicated that Trade Desk is executing very well and enjoyed “solid customer validation,” Schwartz said in a Friday note. 

The company has a variety of agency and large brand customers for its omnichannel platform, and its strategy and technology seem aligned with favorable secular demand for next-gen programmatic advertising and customer engagement technology, the analyst said. 

Trade Desk's strong business momentum could continue through the year, backed by expanding demand, Schwartz said. The company is well-positioned for sustainable growth, EBITDA expansion and market share gains, even in a slowing economy, he said. 

Oppeneheimer forecast that Trade Desk could generate 30-percent year-on-year growth in revenue, EBITDA and FCF over the next three years, driven by market share gains, international market maturation, rapid platform updates and the scaling of its newer services.

Price Action

Trade Desk shares were up 1.93 percent at $192.44 at the time of publication Friday. 

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