In a report released on March 4, Vikram Kesavabhotla from Robert W. Baird maintained a Buy rating on GoDaddy (GDDY – Research Report), with a price target of $130.00.
Vikram Kesavabhotla has given his Buy rating due to a combination of factors, including GoDaddy’s position as a leading domain registrar and the potential for significant free cash flow (FCF) per share growth. He notes that investor expectations have evolved, with a more realistic view of the company’s revenue growth, now seen as mid-single-digit (MSD), and a greater focus on FCF per share. Kesavabhotla believes that the market has become more comfortable with GoDaddy’s financial metrics, especially as revenue growth expectations have become more grounded, which may lead to a reassessment of the company’s value.
Looking ahead to GoDaddy’s investor day, Kesavabhotla anticipates the company to set achievable three-year targets that could stimulate stock appreciation if met or exceeded. He outlines an investor expectation of 5-7% revenue growth, over 32% adjusted EBITDA margins by fiscal year 2026, and considerable share repurchases contributing to a forecast of at least $13 FCF per share by F26. Kesavabhotla also highlights the potential for GoDaddy to exceed these targets, particularly in margin expansion and share repurchases, which could lead to an even stronger FCF per share outcome. Additionally, the Airo interface’s performance is poised to be a pivotal factor for GoDaddy’s Applications and Commerce growth in the near future.
In another report released on February 28, Citi also maintained a Buy rating on the stock with a $130.00 price target.
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Based on the recent corporate insider activity of 61 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of GDDY in relation to earlier this year.
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GoDaddy (GDDY) Company Description:
GoDaddy, Inc. engages in the provision of domain name registration and web hosting services. It provides website building, hosting, and security tools. The company was founded by Robert R. Parsons on January 1997 and is headquartered in Scottsdale, AZ.
Read More on GDDY:
- GoDaddy files to sell 270,508 shares of Class A common stock for holders
- GoDaddy files to sell 271K shares of Class A common stock for holders
- Citi extends ‘positive catalyst watch’ on shares of GoDaddy
- GoDaddy price target raised to $130 from $125 at Barclays
- GoDaddy price target raised to $127 from $88 at Seaport Research
