Analysts on Wall Street have reduced their recommendations on The Trade Desk following media reports that highlighted friction between the ad-tech company and large advertising agencies. The downgrades reflect heightened concern about client relationships and the immediate outlook for revenue.
Brokerage moves
Rosenblatt lowered its rating on the company to Neutral, citing a "sharper-than-expected tone" in reports describing tensions not only with Publicis but also with other major agency groups, including WPP and Dentsu. The firm noted that pressure on agencies - including slower growth and consolidation - could push those agencies to compete more directly with The Trade Desk, thereby creating revenue risk and constraining valuation upside. Rosenblatt established a $25 price target, which it said is based on roughly 8x estimated EV/EBITDA for 2026, and indicated it is stepping to the sidelines until the situation stabilizes.
Track rating changes on InvestingPro, now 55% off
Stifel also downgraded the stock to Hold. The brokerage pointed to uncertainty following an AdAge report that Publicis is no longer recommending The Trade Desk to its clients after an audit of the service agreement between the companies.
Audit findings and company response
The audit, performed by FirmDecisions, raised a number of concerns. Among the allegations were the application of platform fees to other charges and automatic opt-ins for features that carry additional costs. The audit also flagged questions over the transparency of media and data pricing. The Trade Desk responded by saying that providing the requested audit data would have violated confidentiality agreements and that its billing practices are backed by independent compliance standards.
Stifel emphasized the materiality of the Publicis relationship, noting that Publicis represents more than 10% of The Trade Desk's gross billings. Given that level of concentration, Stifel warned that the loss of accounts, or comparable actions from other agency groups, could weaken revenue forecasts and postpone any recovery in growth. While Stifel described The Trade Desk as remaining a leading platform for digital ad buyers and said it anticipates a potential resolution, the firm found no clear near-term catalyst to improve investor sentiment.
The firm set a $26 price target, based on about 8x next twelve-month EBITDA, and said it will reassess its view once there is more clarity on the company's agency relationships.
Modeling and investor signals
Both brokerages highlighted valuation assumptions tied to mid-single-digit EV/EBITDA multiples and signaled a wait-and-see approach while agency dynamics play out. The coordinated downgrades underscore concerns about client concentration and the potential for agency behavior - whether through reduced recommendations or increased competition - to affect The Trade Desk's near-term revenue and investor sentiment.
Additional evaluation tools mentioned
Separately, an AI-based tool, ProPicks AI, is noted as evaluating TTD alongside thousands of other companies using more than 100 financial metrics. The tool reportedly aims to identify stocks with favorable risk-reward profiles and has highlighted past performers, including Super Micro Computer (+185%) and AppLovin (+157%). The description indicates ProPicks AI assesses fundamentals, momentum, and valuation without bias, and that it can show whether TTD appears in any of its strategies or if alternative opportunities exist in the same space.