Citi Raises The Trade Desk (TTD) Price Target on Strong Market Position and Upside Catalysts

NEW YORK, NY – July 1, 2025 – Citi has reiterated its confidence in The Trade Desk (NASDAQ: TTD), elevating its price target to $90 from $82 while maintaining a 'Buy' rating. This adjustment reflects the firm's conviction in TTD's robust market leadership and anticipated near-term growth drivers. Following the announcement, TTD shares experienced an approximate 3% intraday increase.

Reinforcing DSP Leadership

A recent survey conducted by Citi among media buyers underscored The Trade Desk's dominant position within the demand-side platform (DSP) ecosystem. Respondents consistently ranked TTD highest across critical performance indicators, including inventory quality and data capabilities. Significantly, the survey revealed that 'take rates' were a low priority for advertisers, suggesting that TTD's ability to sustain its pricing power is directly tied to its continued performance leadership.

Navigating Competitive Dynamics and Macro Trends

While acknowledging Amazon's DSP is gaining traction for off-Amazon advertising spend, Citi analysts clarified that this shift is largely not at the expense of The Trade Desk. Both platforms are expected to benefit from the broader expansion of programmatic advertising budgets. Insights gleaned from the Cannes Lions advertising conference further bolstered Citi's positive outlook on the macroeconomic environment, with improved ad spending trends observed in Q2 surpassing earlier expectations that informed TTD's initial guidance.

CTV Momentum and Q2 Catalyst Watch

Citi highlighted strong momentum in connected TV (CTV) advertising, noting limited direct competitive risk from Amazon's DSP to TTD's core business. This reinforces confidence in TTD's capacity to continue capturing a significant share of advertising budgets. The firm has initiated a 90-day 'positive catalyst watch' on TTD shares, anticipating potential upside leading into the Q2 earnings release. Analysts project that healthier spending trends could lead to both guidance and consensus estimate beats for the upcoming quarter.

Investment Thesis Summary

Citi's updated price target and continued 'Buy' rating are predicated on several key factors:

• Undisputed DSP Leadership: Reinforced by media buyer surveys highlighting superior inventory and data capabilities.

• Sustainable Pricing Power: Advertisers prioritize performance over take rates, allowing TTD to maintain strong margins.

• Favorable Macro Backdrop: Improved ad spending trends in Q2 exceeding prior expectations.

• CTV Growth: Strong momentum in connected TV advertising, a key growth area for TTD.

• Limited Competitive Threat: Amazon DSP's growth is largely complementary, not directly cannibalistic to TTD.

• Positive Catalyst Watch: Anticipation of strong Q2 earnings driven by robust ad spending.