MoffettNathanson Starts The Trade Desk (TTD) at Neutral

MoffettNathanson analyst Michael Nathanson initiates coverage on The Trade Desk (NASDAQ: TTD) with a Neutral rating and a price target of $100.00.

The analyst comments "Over our careers covering the media and advertising industries, long-running television advertising paradoxes have puzzled most outside observers: Why do the upfronts exist? Why are CPM rates going up as fast as ratings are going down? How can Nielsen be trusted as a currency when no one inside the industry views them as credible? How may commercials can a network cram into one show without killing the value of those commercials … or the network? Truth is, despite all the illogical eccentricities, these practices existed because of the power of linear TV network sellers over the ad agency buyers. In their heyday, powerful network executives representing the major media conglomerates knew that their control of a scarce resource – national TV video impressions – combined with their ability to count the room on the demand side via the upfront delivered massive asymmetric rewards. In other words, “screw you, pay me”. Sure, other advertising segments like search and social media emerged and thrived even during national TV’s halcyon days, but America’s largest brand advertisers remained stuck paying increasing prices for shrinking linear TV audiences …. until they didn’t. As the number of U.S. Pay TV homes dwindle and video audiences continue to fragment, The Trade Desk has emerged as the main beneficiary of this inexorable shift to CTV with a deep moat and support from both sides of the advertising marketplace. In the near to mid-term, there seems very little risk of revenue disappointments as more premium video publishers agree to join their platform. Alas, farewell to linear salesmen of yore. Farewell to three martini lunches and the age of a sellers’ market. Hello to programmatic and an age of inventory glut; and hello to The Trade Desk, the leading intermediary setting the terms."

For an analyst ratings summary and ratings history on The Trade Desk click here. For more ratings news on The Trade Desk click here.

Shares of The Trade Desk closed at $109.51 yesterday.

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