The Trade Desk cleans up; DraftKings 'stronger than ever': 5 big analyst picks
Investing.com — Here is your Pro Recap of the biggest analyst picks you may have missed today: Buy initiations at The Trade Desk, and upgrades at DraftKings, Braze , Editas Medicine , and Medpace.
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The Trade Desk started with Buy rating at two firms
The Trade Desk (NASDAQ:TTD) shares rose more than 3% in recent trading after two Wall Street firms started the company at Buy, as reported in real time on InvestingPro.
Loop Capital started coverage of the company with a Buy rating and a price target of $95.00, writing that The Trade Desk as one of the best long-term growth opportunities available to technology and media investors. The analysts suggest that this is a transformative period for ads, driven by data and technological advancements.
“TTD is enabling much of this change across the open internet to serve ad buyers while also driving monetization gains for Internet publishers whose ARPU severely lags the major walled garden platforms,” commented the analysts.
While the stock is well recognized and holds a significant value in its domain, say the analysts, they foresee considerable growth potential, suggesting a possible market cap of more than $400 billion in the long run (around a span of 10 to 17 years) under its bull case scenario.
Similarly, Cantor Fitzgerald initiated coverage on the company with a Buy rating and a price target of $95.00.
Shares were lately changing hands at $75.97.
DraftKings bumped to Buy
DraftKings (NASDAQ:DKNG) was upgraded to Buy from Neutral at MoffettNathanson, with its price target raised by $6.00 to $37.00.
The analysts noted that, in the fantasy sports contest company has delivered on accelerating "its path to profitability by strategically cutting back on expenses while still investing behind its long-term competitive advantages," as CEO Robert Fishman had laid out in his fourth quarter 2022 letter to shareholders.
The analysts added that expenses have come in "much better while revenues continue to outperform expectations," and that the company has also gone a long way toward closing the market share gap with U.S. online sports betting leader FanDuel, while also overtaking BetMGM as the number one player in U.S. iGaming in the second quarter.
"We expect this momentum in both sides of the business to continue, which should drive sustained, robust topline growth while the company remains focused on strategically reining in expense growth," said the analysts. "Together, this puts DraftKings on the cusp of a meaningful inflection in profitability. Our conviction in the DraftKings story is stronger than ever."
Shares were recently rising 5.9% to $29.80.
Braze gains following an upgrade
Braze (NASDAQ:BRZE) shares jumped after DA Davidson upgraded the company to Buy from Neutral and raised its price target to $53.00 from $48.00.
The rating change follows Braze's 2023 Forge event and Klaviyo 's (NYSE:KVYO) IPO, as well as considering projections for 2024. The analysts believe that Braze's consistent growth, even in a challenging spend environment, its anticipated transition to profitability, and its relative valuation are primary factors to consider owning the stock before facing another challenging 2024. The analysts see potential in the company because of its strong customer base that prioritizes immediate returns on investment and consistently invests in customer engagement.
The revised price target of $53 is based on 8.5x 2024 revenue, aligning with Klaviyo's present multiple.
”While KVYO currently has the metric advantage (largely due to increased scale and recent pricing initiatives), we believe BRZE is better positioned than KVYO to sustain growth going forward,” added the analysts.
Shares were recently climbing 4.3% to $44.46.
{{0||Editas Medicine} upped to Buy at Citi
Editas Medicine (NASDAQ:EDIT) jumped 7% to $6.68 after Citi upgraded it to Buy from Neutral with a price target of $11.00.
The analysts noted that since the beginning of September, the stock price has dropped by over 30% even though there haven't been any major changes in the company's outlook.
“While we have been Neutral/High Risk rated since we initiated coverage last December, we are now upgrading EDIT to Buy/High Risk, as the company’s current valuation shifts our view on risk/reward more favorably,” commented the analysts.
There are two main events expected by the end of the year that could boost the stock's value, added the analysts. The first is the potential readthrough from the upcoming exa-cel AdCom on Oct 31, and the second is the company's expected report of updated data on EDIT-301 by the end of the year, possibly at the ASH event.
Baird upgrades Medspace to Outperform
Baird upgraded Medpace (NASDAQ:MEDP) to Outperform from Neutral and raised its price target to $289.00 from $270.00 following the company’s Q3 beat Monday.
Shares were up 16.3% to $264.59.
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