Truist Securities on Monday reduced its price target for The Trade Desk (NASDAQ: TTD) to $60.00 from $85.00, though the firm kept a Buy rating on the programmatic advertising company. The revised target comes as shares of TTD are trading close to a 52-week low of $34.00, reflecting an almost 70% decline over the past 12 months. Data from InvestingPro included with the filing suggests the stock appears undervalued when compared to its calculated Fair Value.
The Trade Desk disclosed in a Form 8-K filed Monday that its fourth-quarter 2025 revenue and adjusted EBITDA are expected to align with guidance previously provided. That guidance calls for revenue of at least $840 million - roughly a 13% year-over-year increase - and approximately $375 million of adjusted EBITDA, which would imply a margin near 45%.
Alongside the financial update, the company announced a leadership change in the finance function. Alex Kayyal, who had assumed the chief financial officer role in August 2025, has departed. The Trade Desk named Chief Accounting Officer Tahnil Davis as interim CFO. The company later stated that Davis' interim assignment is effective January 24. Davis has been with the firm for nearly 11 years and will report directly to CEO Jeff Green.
Truist noted that the company’s underlying operations seem to be tracking in line with expectations despite the tougher year-over-year comparisons and intensifying competition from Amazon’s demand-side platform. Nevertheless, the brokerage firm singled out the CFO transition as a source of near-term uncertainty that could cloud the outlook for investors.
Street consensus for fourth-quarter 2025 remains close to the company’s guidance, with current analyst estimates at $841 million for revenue and $377 million for adjusted EBITDA. At the same time, the stock trades at a price-to-earnings ratio of 38.81. According to InvestingPro, that P/E is low relative to the company’s projected near-term earnings growth.
Other analyst moves have followed. Stifel reduced its price target to $74 from $90, pointing to the risk of "lackluster" first-quarter guidance driven by revenue shifts stemming from a business reorganization. Citizens took a more conservative stance, downgrading The Trade Desk from Market Outperform to Market Perform and citing growing competitive pressure within the digital advertising sector. Bank of America also lowered its price target, moving it to $40 from $49 while maintaining an Underperform rating; BofA expects fourth-quarter results to be consistent with current guidance and flagged that consumer weakness could weigh on consumer packaged goods advertising spend.
The Trade Desk reiterated that its fourth-quarter 2025 financial guidance has not changed from the figures first provided in November 2025: at least $840 million in revenue and approximately $375 million in adjusted EBITDA. The company has appointed Tahnil Davis as interim chief financial officer, effective January 24, and confirmed Davis will continue to report to CEO Jeff Green.
Investor tools referenced in the company’s broader coverage indicate The Trade Desk remains a subject of active analyst scrutiny and quant and pro-research products continue to evaluate the name across multiple metrics. Those services note both valuation signals and earnings-growth expectations as inputs in assessing the company versus peers.
Analytical takeaway - The Trade Desk faces a mix of steady operating guidance and heightened near-term uncertainty following the change in financial leadership. Analysts have adjusted price targets and ratings to reflect both competitive dynamics in programmatic ad markets and organizational shifts internally.