The Trade Desk Stock Is Again Falling Today – Why Are Analysts Slashing Price Targets?

Firms like Citi, Rosenblatt and Truist all slashed their price targets citing surprise departure of its CFO and uncertainty around the company’s management.

• Rosenblatt analyst Barton Crockett lowered the firm's price target on Trade Desk to $53 from $64
• Truist analyst Youssef Squali lowered the firm's price target on Trade Desk to $60 from $85 and said it is adjusting its model to reflect “greater uncertainty" following the company's announcement of a CFO transition. 
• The Trade Desk's CFO Alex Kayyal stepped down on Monday after just five months into the job, bringing in uncertainty over a key role in the company’s operations.

The Trade Desk shares fell nearly 5% on Tuesday after several brokerages slashed their price targets on the stock. 

Firms like Citi, Rosenblatt and Truist all slashed their price targets, citing the surprise departure of its CFO and uncertainty around the company’s management. 

Price Cuts

Rosenblatt analyst Barton Crockett lowered the firm's price target on Trade Desk to $53 from $64 and kept a ‘Buy’ rating on the shares. The firm reduced the stock's valuation multiple citing the "surprising termination" of CFO Alexander Kayyal after only five months on the job. The "surprising personnel volatility in this key post for now eviscerates the argument for a valuation premium to growth," the analyst told investors in a research note, as per TheFly. 

Truist analyst Youssef Squali lowered the firm's price target on Trade Desk to $60 from $85 and kept a ‘Buy’ rating on the shares. The firm said it is adjusting its model to reflect "greater uncertainty" following the company's announcement of a CFO transition. 

Citi also lowered the firm's price target on Trade Desk to $38 from $50 and kept a ‘Neutral’ rating on the shares.

Surprise CFO Departure

The Trade Desk's CFO Alex Kayyal stepped down on Monday after just five months into the job, bringing in uncertainty over a key role in the company’s operations. 

The Trade Desk has appointed Tahnil Davis as interim Chief Financial Officer (CFO), effective January 24, while it conducts a search for a permanent successor.

How Did Stocktwits Users React?

Retail sentiment around TTD trended in ‘extremely bullish’ territory amid ‘extremely high’ message volume. 

Shares in the company fell 72% over the past 12 months.