By Sam Boughedda
The Trade Desk Inc . (NASDAQ:TTD) held its 2022 investor day event on Tuesday. Following the event and comments from analysts, the company's shares are down more than 6% in Wednesday's session.
The company was said by Needham & Company analysts to have laid out its strong competitive position, accelerating growth drivers and rising barriers to entry.
The analysts, who have a Buy rating and $65 price target on The Trade Desk shares, said, "TTD reiterated their LT 40% EBITDA goal, but didn't add new 2022 or 2023 financial targets. Their primary focus was drivers of Open Internet ad growth and TTD's strategic position within that context."
Elsewhere, Stifel analysts, who have a Buy rating and $78 price target on the stock, stated that management highlighted similar market metrics as it has in the past, "with a particular focus on CTV, which the company believes is likely to hit an inflection point in 1Q23 as ad-based tiers from Netflix (NASDAQ:NFLX) and Disney+ (NYSE:DIS) will likely be in market by then."
"Management made a compelling case that Netflix and others will likely have to open their inventory to open bidding in order to hit the desired CPMs as presented in recent press (which means TTD is likely to gain access)," wrote the analysts. "Management reiterated its 40% long-term adj. EBITDA margin target, while also discussing its capital allocation options. We remain Buy rated with a $78 target."
Susquehanna analysts stated that the analyst day provided an in-depth overview of TTD's business, strategy and drivers.
"TTD remains a must-own name, driven by a multi-pronged, multi-year secular growth story," stated the analysts, who have a Positive rating and $95 price target on the stock. The key drivers – CTV (both US and international), shopper marketing, Solimar (and general technology leadership), international, and UID2 – continue to gain momentum, and we see significant upside ahead."
Finally, analysts at Raymond James, explained that topics of discussion at the investor day event skewed heavily toward product over financials.
"While not likely to change any minds in the near term (and avoiding discussion of near-term trends), the additional color on emerging opportunities and some of the more technical aspects of the platform was appreciated."