Trade desk rises after “outstanding” results. This is what Wall Street thinks

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trade office

Shares rose on Wednesday after the advertising technology company delivered strong quarterly results despite the challenging environment.

The numbers prompted analysts to raise their targets for the stock price.

In morning trade, shares of Trade Desk (Ticker:) were up 34.8%, to $73.43 — the biggest 1 percent increase since August 2018 when the stock surged 37.13%.

After the market closed on Tuesday, the company reported adjusted earnings of 20 cents a share for the second quarter, matching the consensus it reported.

set of facts
.

Adjusted earnings before interest, taxes, depreciation and amortization, or Ebitda, were $139 million, beating estimates of $122.7 million. Revenue was $377 million, up 25% from the previous year and beating the consensus at $364.9 million.

The company forecast third-quarter revenue of at least $385 million, up 28% year-over-year, while Wall Street forecast $382 million. The $140 million forecast in revised Ebitda was also ahead of the 134 million analysts had forecast.

RBC’s Matthew Swanson, who has an outperformance rating on the stock, pushed his price target to $80 from $75. Call

trade office

Results “Prominent standing among peers as management weathered overall headwinds.”

Needham analyst Laura Martin raised its price target to $65 from $55. I raised the possibility

trade office

replacing

alphabet

(The Google)

The Google

as a dominant digital advertising platform, highlighting global regulatory pressure on Google in a research note on Wednesday. Martin has a buy rating.

KeyBanc’s Justin Patterson, who has an overweight rating, raised his target price to $70 from $52 previously. He sees Desk of Trade as a leading, independent advertising technology company with a great opportunity to expand internationally. In the second quarter, North America represented 90% of revenue, up from 88% in the first quarter.

To be sure, not every trade desk analyst is optimistic. Mark Zgutowicz of Benchmark has a Hold rating and a target price of $54.50. He doesn’t see enough catalysts to press stocks much higher, especially in a recessionary environment.

Zgutowicz acknowledges that ad volumes will remain strong through the second half of the year, buoyed by spending on political ads, but doesn’t see the momentum of connected TV advertising continuing.

On its earnings call, the Bureau of Commerce increased CTV multiple times. Its website says in large letters that three-quarters of all global advertisers run TV-related or over-the-top (OTT) ads through its platform.

“If we continue to implement, I think we will benefit as much as any company in the world from this tailwind,” said founder and CEO Jeff Green.

In May, the giant flows

Netflix

(NFLX) said it was exploring ways to add an affordable subscription option. This led to a rise in the shares of the Trade Bureau Analysts flipped their ratings on the Trade Bureau to buy on a potential deal. finally,

Netflix

to choose

Microsoft

(MSFT) as an exclusive partner to serve ads.

For Green, that’s still a positive.

“We think this is another strong indication that more industry leaders are recognizing the opportunity of the open internet compared to the risks and limitations of gated gardens,” he said, referring to Google as a closed platform with significant control over its content, hardware, and more.

Write to Karishma Vanjani at [email protected]