Truist Downgrades TTD to Hold Amid Macro Pressures and Execution Issues
Truist Securities downgraded The Trade Desk (NASDAQ:TTD) to Hold from Buy, citing both macroeconomic pressures and internal execution challenges. In a report published on August 7th, the firm lowered its price target for TTD to $16.00 from $35.00.
The stock currently trades at $17.67, near its 52-week low of $16.70, and has declined 80% over the past year. Truist attributed the shortfall in second-quarter results and third-quarter guidance to pressures on leading consumer packaged goods and food and beverage clients like Procter & Gamble from geopolitical and tariff headwinds.
Heightened management turnover at The Trade Desk also affected performance, but Truist said that internal issues are solvable given the company's healthy finances and strong position amid secular growth trends. However, the firm stated that the fix is likely to take several quarters to positively affect growth.