Trade Desk Stock Soars On Sincera Deal, Analyst’s Bold 37% Upside Call: Retail Mood Brightens
BMO Capital Markets analyst Brian Pitz said his channel checks suggested strong connected TV performance, which should translate to solid stock performance.
Trade Desk, Inc. (TTD) shares surged higher in Wednesday’s premarket session following the acquisition of digital ad data company Sincera and an upward revision to BMO Capital Market’s price target for the stock.
Trade Desk stock also received support from a benign December consumer price inflation (CPI) report, which has lifted broader market sentiment.
Ventura, California-based Trade Desk is a technology services company that provides a self-service cloud-based platform that allows buyers to plan, manage, optimize, and measure data-driven digital advertising campaigns across various ad formats and channels.
Trade Desk announced a definitive agreement to acquire Sincera on Wednesday. The companies did not disclose the financial terms of the deal.
Jeff Green, Founder and CEO of Trade Desk, said, "With this acquisition, we will scale the impact of Sincera in a way that will upgrade programmatic performance for everyone, and especially the quality of data signals that advertisers get from publishers."
The company noted that Sincera has been one of its key business partners in recent years.
Separately, BMO Capital Markets analyst Brian Pitz maintained an ‘Outperform’ rating for Trade Desk’s stock and lifted the price target to $160 from $125, TheFly reported. The analyst’s one-year price target suggests a potential upside of over 37%.
Trade Desk stock soared over 63% in 2024 before ending at $117.73, but it has since lost about 0.70%.
Pitz said his channel checks suggested strong connected TV performance, which should translate to solid stock performance.
According to the analyst, Trade Desk remained best positioned on the demand side to benefit from the $150 billion linear ad shifts to TV.
However, Wedbush analyst Scott Devitt did not exude much optimism regarding fourth-quarter performance. The firm’s Digital Ad Survey showed only modest spending sequential growth for Trade Desk in the fourth quarter.
The analyst noted that the current consensus calls for 25.3% year-over-year revenue growth for the fourth quarter, down 200 basis points from the third-quarter growth.
However, advertiser sentiment for the fourth quarter and 2025 remained encouraging and was relatively stable, the analyst added.
TTD sentiment and message volume January 15 2025, as of 9:46 am ET | Source: StocktwitsOn Stocktwits, sentiment toward Trade Desk stock improved to ‘bullish’ (68/100) from ‘neutral’ a week ago, with message volume at ‘high’ levels.
The stock was up 2.46% at $119.67 in early trading on Wednesday.
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