The Trade Desk Inc (NASDAQ:TTD) is trading lower on Tuesday after KeyBanc delivered a sharp cut to its price target. This comes after multiple analysts lowered their price targets for the company last week.
KeyBanc analyst Justin Patterson kept an Overweight rating on the stock but slashed the price target from $88 to $40, a roughly 55% reduction.
Lower Growth Expectations Drive the Downgrade
The downgrade reflects a more cautious growth outlook for the ad‑tech company. Patterson trimmed his revenue estimates for 2026 and 2027 by 1% and 5%, respectively, citing softer expectations for open‑internet ad spending. Those lower revenue forecasts also led to reduced EBITDA projections, with 2026 estimates down 1% and 2027 estimates lowered by 6%, Investing.com reported.
KeyBanc's new $40 target is based on an 11.5x multiple of The Trade Desk's projected 2027 EV/EBITDA, incorporating both the revised financial outlook and a lower valuation framework.
The Trade Desk reaffirmed its fourth‑quarter 2025 guidance, calling for at least $840 million in revenue and roughly $375 million in adjusted EBITDA.
Technicals Show Deep Weakness
The stock is currently trading 24.4% below its 20-day simple moving average (SMA) and 37.4% below its 100-day SMA, indicating a bearish trend. Over the past 12 months, shares have decreased by 77.28% and are currently positioned closer to their 52-week lows than highs, reflecting significant long-term weakness.
The RSI is at 24.01, which is considered oversold, signaling potential for a bounce-back if buying interest returns. Meanwhile, MACD is below its signal line, indicating bearish pressure on the stock.
The combination of oversold RSI and bearish MACD suggests mixed momentum, reflecting the current challenging market conditions.
- Key Resistance: $29.50
- Key Support: $25.00
TTD Price Action: Trade Desk shares were down 9.58% at $26.90 at the time of publication on Tuesday. The stock is trading at a new 52-week low, according to Benzinga Pro.
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