Morgan Stanley names Trade Desk a top pick in ad stocks

Trade Desk Inc (NASDAQ: TTD) is in the green on Friday after a Morgan Stanley analyst named it a top pick in ad stocks.

Trade Desk stock has 20% upside from here

Matthew Cost upgraded the California-based company this morning on “overweight” and raised his price objective to $90 that suggests a 20% upside from here.

The analyst is constructive on the Trade Desk stock as he expects the multinational to benefit as ad spending continues to improve moving forward.

Cost is convinced that the connected TV revenue will expand at about an 18% compound annual growth rate (2025) over the next few years.

Trade Desk issued strong guidance for Q2

Last month, the Nasdaq-listed firm reported better-than-expected results for its fiscal Q1 and issued upbeat guidance for the current quarter.

Trade Desk stock is already up roughly 70% for the year but Matthew Cost said it will continue to benefit from growth not just in retail media but in ad-supported streaming as well.

In Q2, the technology company expects $452 million of revenue – a 24% sequential growth. Earlier this week, Laura Schenkein assumed the role of its Chief Financial Officer.