Morgan Stanley names Trade Desk a top pick in ad stocks

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on Jun 2, 2023
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  • Morgan Stanley analyst upgraded Trade Desk to "overweight" on Friday.
  • Matthew Cost expects it to benefit as ad spending continues to improve.
  • Trade Desk stock is already up about 70% versus the start of the year.

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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

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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.

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

We believe Trade Desk will be able to leverage its position as an independent player to sign more retail media partners … and ultimately be a leader in offsite retail media advertising.

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

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Trade Desk issued strong guidance for Q2

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

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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.

TTD is well positioned to benefit from both trends as advertisers shift dollars from traditional linear TV to streaming and leverage retailers’ customer data to run more effective/measurable ad campaigns.

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.

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