Jefferies noted that management projected roughly 10% YoY revenue growth for the first quarter, below the Street’s 12% estimate, and signaled a margin decline of about 500 basis points compared with last year.
- Jefferies slashed its price target on the stock to $22 from $27 while maintaining a ‘Hold’ rating.
- Stifel lowered its price target to $48, adding that advertising demand from consumer packaged goods and automotive clients remained soft.
- Morgan Stanley analyst Matthew Cost pointed to macroeconomic pressures on ad budgets.
Wall Street is reassessing its outlook on The Trade Desk Inc. (TTD) after the digital advertising platform delivered a fourth-quarter performance that drew mixed reactions and issued first-quarter guidance that fell short of some Street expectations.
The company posted a revenue of $847 million, a 14% year-on-year (YoY) rise with an adjusted earnings per share (EPS) of $0.59. Both revenue and EPS came in above the analysts’ consensus estimates of $841 million and $0.59, respectively, according to Fiscal AI data.
Jefferies Trims Target After Softer Outlook
Jefferies slashed its price target on the stock to $22 from $27 while maintaining a ‘Hold’ rating, citing a smaller-than-usual Q4 revenue beat and a first-quarter (Q1) growth forecast that lagged consensus expectations, according to TheFly.
The firm noted that management projected roughly 10% YoY revenue growth for Q1, below the Street’s 12% estimate, and signaled a margin decline of about 500 basis points compared with last year. According to Jefferies, that margin outlook implies profitability improvements later in fiscal 2026 but also underscores competitive pressures in the near term.
The Trade Desk stock traded over 14% lower on Thursday, after the morning bell. On Stocktwits, retail sentiment around the stock jumped to ‘extremely bullish’ from ‘bearish’ territory the previous day. Message volume shifted to ‘extremely high’ from ‘low’ levels in 24 hours.
What Did Stifel And Morgan Stanley Say?
Stifel lowered its price target to $48 from $74 yet reiterated a ‘Buy’ rating. The firm said Q4 results exceeded the company’s January pre-announcement, even as advertising demand from consumer packaged goods and automotive clients remained soft.
Stifel acknowledged that these categories contributed to a lighter Q1 forecast but suggested that once the near-term guidance is absorbed, political advertising in 2026 could provide a meaningful boost and help in growth.
Morgan Stanley analyst Matthew Cost cut his target to $30 from $42 and kept an ‘Equal Weight’ rating. He called the quarter mixed, pointing to macroeconomic pressures on ad budgets and heightened competition that weighed on performance.
TTD stock has declined by 69% in the last 12 months.
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