The Trade Desk (TTD) Draws Overweight Rating Despite Competitive Concerns

The Trade Desk, Inc. (NASDAQ:TTD) ranks among the best communication services stocks to buy now. Despite recent market worries regarding competitive challenges, KeyBanc reaffirmed its Overweight rating and $88 price target on The Trade Desk, Inc. (NASDAQ:TTD) on September 11. The company was trading at far lower multiples than its three-year medians, with the Trade Desk shares closing down 12% while the NASDAQ remained unchanged.

According to KeyBanc, it might take two to three quarters of steady performance to restore investor faith in The Trade Desk, Inc. (NASDAQ:TTD). The main question is whether the company can re-accelerate to high teens to 20% year-over-year growth or if it is developing into a high single-digit to low double-digit percentage grower.

That said, KeyBanc believes the current valuation is an attractive entry point for long-term investors.

The Trade Desk, Inc. (NASDAQ:TTD), a leading supplier of advertising technology, specializes in offering advertising solutions to digital marketers. Advertisers may plan, manage, and optimize their digital ad campaigns across various platforms and channels using its self-service, transparent software and cloud-based platform.

While we acknowledge the potential of TTD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.