Analysts Slash Trade Desk Price Targets on 27%–36% Q2 Growth Warning
Trade Desk projected second-quarter revenue growth of 27%–36% year-over-year, a sharp deceleration from first-quarter’s 59% gain, triggering rating downgrades by major brokerages. JPMorgan cut its rating to Neutral with a $75 price target and UBS lowered its forecast to $70, reflecting concerns over slowing demand.
1. Guidance Revision
Trade Desk reduced its second-quarter revenue growth forecast to 27%–36% year-over-year, down from a 59% gain in the first quarter. Management cited softer ad spending trends and elongated sales cycles as key factors behind the more conservative outlook.
2. Analyst Downgrades
In response to the guidance cut, JPMorgan downgraded Trade Desk to Neutral and set a $75 price target, while UBS lowered its valuation to $70. Other brokerages followed suit, shifting ratings from Overweight to Hold and trimming targets by 15%–20%.
3. Market Implications
The revised guidance and subsequent analyst actions have weighed on investor sentiment, pressuring the stock’s valuation multiples. Slower revenue expansion raises concerns about Trade Desk’s ability to sustain its high-growth model and may lead to broader margin pressures into 2026.