Trade Desk (TTD) showed an encouraging near-term setup amid management's "conservative" outlook, Wedbush Securities said in a Q2 preview note Thursday.

"The near-term setup for TTD has turn more constructive," Wedbush analysts Scott Devitt and Matthew Weiss said.

"Recent management commentary has eased some concern around recent debates, including competition, execution risk, and the ultimate size of the company's longer-term opportunity," they said.

The analysts also pointed to factors that could support upside to current estimates, including positive feedback in their Q2 digital advertising survey, and continued Kokai adoption and sustained momentum in CTV demand.

While analyst estimates are aligned with the company's Q2 revenue guidance, management's forecast seems "conservative" based on its track record of beating expectations, they added.

Wedbush raised its price target to $90 from $86 while keeping its outperform rating.

Shares of the company were up past 3% in recent trading.

Price: 82.81, Change: +1.68, Percent Change: +2.06