Oppenheimer Believes Trade Desk Inc (NASDAQ: TTD) Still Has Room to Grow

By Carrie Williams

In a report released today, Brian Schwartz from Oppenheimer reiterated a Buy rating on Trade Desk Inc (NASDAQ: TTD), with a price target of $130. The company’s shares closed yesterday at $93.29, close to its 52-week high of $97.87.

Schwartz commented:

“The Trade Desk reported another excellent quarter with SaaS industry-leading blended revenue growth of 54% and 33% adjusted EBITDA margins, and 18 straight quarters of 95%+ retention. Other metrics were impressive, too, including connected TV (an investable theme) doubling sequentially, customers using 6 channels growth accelerating, which supports our thesis (page 3), the core platform refresh launched, and a meaningful raise to the 2018 revenue outlook. On balance, revenue guidance implies some deceleration despite easier 2H:2018 comps. Bottom Line: TTD shares look undervalued with the business operating at the Rule of 80 (Revenue growth + Adjusted EBITDA margin) for two years versus Paycom, the SaaS industry leader at the Rule of 70. Nevertheless, TTD shares trade at a discount to their SaaS company peers, suggesting further multiple expansion looms. Raise PT to $130 from $101.”

According to TipRanks.com, Schwartz is a top 25 analyst with an average return of 28.4% and a 78.7% success rate. Schwartz covers the Technology sector, focusing on stocks such as Ultimate Software, Instructure Inc, and Salesforce.com.

Trade Desk Inc has an analyst consensus of Moderate Buy, with a price target consensus of $95.10, which is a 1.9% upside from current levels. In a report released yesterday, RBC Capital also reiterated a Buy rating on the stock with a $126 price target.

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Based on Trade Desk Inc’s latest earnings release for the quarter ending June 30, the company reported a quarterly net profit of $19.34 million. In comparison, last year the company had a net profit of $18.85 million.

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The Trade Desk, Inc. provides a technology platform for ad buyers. It offers agencies, aggregators and advertisers technology to manage and display, social, mobile and video advertising campaigns. The company was founded by Jeffrey Terry Green and David Pickles in November 2009 and is headquartered in Ventura, CA.