Evercore ISI raises Trade Desk stock price target on cost cuts By Investing.com

Investing.com - Evercore ISI raised its price target on The Trade Desk stock (NASDAQ:TTD) to $14.00 from $13.00 while maintaining an In Line rating. The stock currently trades at $14.14 with a market cap of $6.64 billion, though shares have declined 72% over the past year. The Trade Desk announced on September 3 an organizational realignment and 15% workforce reduction effective September 4. The company said the changes aim to align resources with its highest-priority growth opportunities and improve operational effectiveness. The company expects to recognize restructuring and related charges of $39 million to $51 million in the third quarter, partially offset by a $4 million to $5 million stock-based compensation reversal. Evercore ISI estimates annualized savings in a range of $125 million to $175 million, though potentially offset by some level of reinvestment. The firm adjusted its adjusted EBITDA forecasts for The Trade Desk, which increase by 3% in fiscal 2026 and 14% in fiscal 2027. The company generated $698 million in EBITDA over the last twelve months and maintains a solid balance sheet with more cash than debt. According to InvestingPro analysis, TTD appears undervalued at current levels, with the platform offering comprehensive insights including Fair Value estimates and financial health scores for deeper analysis. Evercore ISI also reduced its forward stock-based compensation forecasts by approximately 10%. The firm maintained its 7x fiscal 2027 EV/EBITDA multiple in its valuation framework. Evercore ISI said it anticipates the company may have additional cost savings opportunities in software, services and real estate. In other recent news, The Trade Desk announced a significant workforce reduction, cutting approximately 15% of its employees. This restructuring plan is expected to generate around $150 million in annualized cost savings and is aimed at redirecting resources towards higher-priority growth areas. KeyBanc has maintained its Sector Weight rating on the company following this announcement. Additionally, The Trade Desk filed a shelf prospectus, allowing for the potential sale of various securities, including common and preferred stock, debt securities, and warrants. Rosenblatt Securities has lowered its price target for The Trade Desk to $12.00, citing weak advertising trends and a miss on guidance and estimates for the second quarter of 2026. The firm has maintained a Neutral rating and noted the company's guidance of negative trends for the third quarter. Similarly, UBS reduced its price target to $16.00, maintaining a Buy rating, and highlighted macroeconomic pressures affecting 25% of the company's gross spend. UBS also noted The Trade Desk's focus on improving product shipping speed and updates to its Kokai model. These developments reflect the company's ongoing adjustments in response to market conditions and internal strategic priorities. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.