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Analysts at the investment bank covering US digital marketing software platforms said they expect the programmatic industry to continue to gain as viewers shift from traditional to Connected TV and as streaming platforms prioritize ad-supported subscription tiers.
“Retail media partnerships and AI-driven solutions will help differentiate some of our names given the growing global focus on privacy and impending phase-out of third-party web cookies,” wrote analysts. “Ongoing antitrust actions against Big Tech present an upside risk to the industry as a whole.”
The bank believes The Trade Desk’s market-leading position and track record for innovation should support continued outperformance in the fast-growing programmatic space. The target price implies a potential upside of 9.4% to the closing price on December 14.
AppLovin is described as “the market leader in mobile app install advertising with a lead in AI solutions” by HSBC. It thinks AppLovin is well-positioned to benefit from the budding recovery of the segment. The price target implies a potential upside of 37.5% to the December 14 close.
Unity’s AdTech business is “turning the corner,” and the revamp of game engine fees should prove revenue accretive, notes HSBC. However, they note the firm is still looking at deaccelerating organic growth and a sizable convertible debt overhang with “little prospect of near-term profitability.” The price target implies a downside potential of 3.3% to the closing price on December 14.
