Evercore Upgrades Trade Desk Stock, Downplays Amazon Competition Concerns
Strong Product Execution and Ad Market Confidence Fuel TTD’s Rally
Shares of Trade Desk (TTD) surged after Evercore ISI, led by five-star analyst Mark Mahaney, upgraded the stock from Hold to Buy.
- The upgrade reflects Evercore’s increased confidence in digital ad spending, improved execution at Trade Desk, and robust new product launches.
In a research note dated June 26, Evercore highlighted strong client feedback about Trade Desk’s updated Kokai user experience.
- The transition from Solimar to Kokai in early 2024 was praised by agency leaders for smoother operations and improved client service.
Amazon Not a Major Threat to Trade Desk
While Wells Fargo downgraded Trade Desk recently due to Amazon’s growing ad platform, Evercore argues that Amazon’s offerings compete more directly with Google’s DV360 than with Trade Desk.
- The firm sees Google as more likely than Trade Desk to lose market share to Amazon’s demand-side platform,
- Suggesting that concerns about Amazon overtaking Trade Desk are overstated.
Strong Growth Outlook Through 2026
Evercore expects Trade Desk to grow revenue by approximately 20% per year through 2026,
- With potential upside from political ad spending during the U.S. midterm elections.
- Other growth drivers include rising ad budgets from Netflix, expanding retail media, improved targeting through Trade Desk’s Retail Sales Index, and major global events like the 2026 FIFA World Cup and Winter Olympics.
As a result, Evercore set a $90 price target for TTD stock,
- Representing more than 28% upside from current levels.