Analysts Have Been Trimming Their The Trade Desk, Inc. (NASDAQ:TTD) Price Target After Its Latest Report

Shareholders in The Trade Desk, Inc. (NASDAQ:TTD) had a terrible week, as shares crashed 30% to US$81.92 in the week since its latest full-year results. The result was positive overall - although revenues of US$2.4b were in line with what the analysts predicted, Trade Desk surprised by delivering a statutory profit of US$0.78 per share, modestly greater than expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Trade Desk

Following the latest results, Trade Desk's 34 analysts are now forecasting revenues of US$2.90b in 2025. This would be a notable 18% improvement in revenue compared to the last 12 months. Per-share earnings are expected to step up 14% to US$0.91. In the lead-up to this report, the analysts had been modelling revenues of US$2.97b and earnings per share (EPS) of US$1.07 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a substantial drop in earnings per share numbers.

It'll come as no surprise then, to learn that the analysts have cut their price target 15% to US$115. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Trade Desk at US$155 per share, while the most bearish prices it at US$57.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Trade Desk's revenue growth is expected to slow, with the forecast 18% annualised growth rate until the end of 2025 being well below the historical 26% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 3.5% per year. Even after the forecast slowdown in growth, it seems obvious that Trade Desk is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded Trade Desk's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Trade Desk going out to 2027, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Trade Desk that you need to be mindful of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.