William Blair analyst Arjun Bhatia has maintained their bullish stance on GDDY stock, giving a Buy rating today.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Arjun Bhatia has given his Buy rating due to a combination of factors including GoDaddy’s impressive revenue growth and profitability metrics. The company’s fourth-quarter revenue outpaced expectations, growing by 8.4%, with a notable acceleration in the application and commerce segment. This sector experienced a significant increase in bookings, driven by changes in pricing and packaging, alongside the impact of Airo, which is expected to be a long-term growth driver.
Furthermore, GoDaddy demonstrated strong performance on profitability metrics, with the adjusted EBITDA margin and unlevered free cash flow margin both surpassing prior guidance. Despite some disappointment from the mixed full-year guidance, particularly regarding margins, the company’s strategic initiatives and cost management are expected to support future growth. GoDaddy’s commitment to achieving a 33% adjusted EBITDA margin target by 2026 also underpins Arjun Bhatia’s positive outlook for the stock.
In another report released today, Barclays also maintained a Buy rating on the stock with a $243.00 price target.