Trade Desk (TTD) shares rallied more than 20% this morning after the adtech giant reported better-than-expected Q1 earnings, indicating continued demand for its products despite an uncertain macroeconomic environment.
The company based out of Ventura, California grew its revenue by 25% year-over-year to $616 million and earned $0.33 per share in its fiscal first quarter – both handily above Street estimates.
Including today’s rally, TTD stock is up more than 60% versus its recent low.
Trade Desk Stock Rallies on Encouraging Guidance
Investors are cheering Trade Desk stock at writing because the company’s revenue guidance for the current quarter slightly topped expectations as well.
TTD now expects its Q2 revenue to print at $682 million, about a percentage point above consensus estimates.
Additionally, in the earnings release, the Nasdaq-listed firm said its new advertising platform was gaining traction with customers, further reinforcing its position as a leader in programmatic ad-buying and AI-driven advertising solutions.
This made KeyBanc analysts led by Justin Patterson raise their price target on TTD shares to $80 on Friday, indicating potential upside of another 15% from here.
Why Is KeyBanc Bullish on TTD Shares?
Trade Desk is strongly positioned to harness massive opportunities in connected TV and retail media, said Justin Patterson in his research note on Friday.
Patterson expects continued adoption of Kokai, the company’s latest ad platform, to help unlock significant further upside in TTD shares through the remainder of 2025.
About two-thirds of Trade Desk’s clients now have Kokai in their toolbox, with management committed to 100% adoption by the end of this year.
All in all, KeyBanc remains positive on the advertising software maker as “several of the factors contributing to 4Q’s rare miss have been resolved.”
Wall Street Sees Significant Further Upside in Trade Desk
What’s also worth mentioning here is that Patterson is not the most bullish on TTD stock.
The consensus rating on TTD shares currently sits at “Moderate Buy” with the mean target of an even higher $91, which signals potential upside of about 30% from current levels.
