Analyst Mark Zgutowicz of Benchmark Co. reiterated a Buy rating on GoDaddy, retaining the price target of $250.00.
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Mark Zgutowicz has given his Buy rating due to a combination of factors that position GoDaddy for potential growth. The company is expected to benefit from a shift in its revenue mix towards Applications & Commerce (A&C), which is anticipated to enhance its adjusted EBITDA performance in the second half of the year. This shift is supported by an increase in A&C bookings and the potential for AI efficiencies to attract larger clients, creating opportunities for revenue growth.
Additionally, GoDaddy’s strategy includes expanding its product offerings and enhancing customer engagement through new and existing products, which could lead to better-than-expected average revenue per user (ARPU) growth. The company’s focus on capital allocation, particularly through stock buybacks, further supports its financial health. With a discounted trading multiple compared to its historical average, GoDaddy presents a compelling investment opportunity, justifying the Buy rating and a price target of $250.
In another report released today, Citi also maintained a Buy rating on the stock with a $234.00 price target.
Based on the recent corporate insider activity of 84 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.