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On Monday, Benchmark analyst Mark Zgutowicz adjusted the price target for GoDaddy Inc (NYSE:GDDY) shares, reducing it to $250 from the previous $275, while sustaining a Buy rating on the stock. Currently trading at $184.93, GoDaddy has demonstrated strong momentum with a 46.7% return over the past year. The revision comes ahead of the company’s first-quarter earnings report, scheduled for release after the market closes on Thursday, May 1, 2025.
Zgutowicz expressed continued confidence in GoDaddy’s ability to achieve higher-than-anticipated average revenue per user (ARPU) in the near term. This optimism is based on several factors, including the uptake of new products like the Digital Marketing Suite and GoDaddy Capital, as well as the company’s effective use of artificial intelligence to drive up-market momentum and its successful product bundling strategies. According to InvestingPro data, the company has maintained solid profitability with a 63.9% gross margin and 7.5% revenue growth in the last twelve months.
Despite the positive outlook, Benchmark has scaled back its total revenue forecast for GoDaddy to $4.9 billion for the year 2025, positioning it at the midpoint of the company’s guidance. The firm’s revised compound annual growth rate (CAGR) for total revenue from 2024 to 2026 now stands at 7.0%, aligning with the midpoint of GoDaddy’s guidance provided during its 2024 Investor Day. InvestingPro analysis suggests the stock is currently trading above its Fair Value, with elevated valuation multiples including a P/E ratio of 27.8x and EV/EBITDA of 26.9x. Discover more insights and 10+ additional ProTips with an InvestingPro subscription.
The price target reduction also reflects a more conservative free cash flow (FCF) per share CAGR for the period from 2024 to 2026, which is now 320 basis points below GoDaddy’s target of 20%. The new discounted cash flow (DCF)-based price target takes into account a higher weighted average cost of capital (WACC) and trimmed estimates.
Zgutowicz concluded his remarks by noting that the new price target of $250 implies a near-term enterprise value to adjusted EBITDA ratio of 22.4x for GoDaddy, which is consistent with the levels seen in February 2025.
In other recent news, GoDaddy has been the focus of several key developments. Benchmark analyst Mark Zgutowicz raised GoDaddy’s stock price target to $275, citing a slight increase in projected revenue for 2025, driven by strong growth in the Applications & Commerce segment. On the other hand, Cantor Fitzgerald adjusted its price target to $210, maintaining a Neutral rating but acknowledging solid fourth-quarter results and robust bookings growth expected in 2025. Raymond (NSE:RYMD) James analyst Josh Beck increased the stock price target to $235, praising GoDaddy’s strong fourth-quarter performance and the rapid advancement of its Airo AI monetization path. Citi analysts also raised their price target to $260, noting GoDaddy’s conservative yet promising guidance for 2025, with potential for upward revisions in revenue and free cash flow. Additionally, GoDaddy has partnered with Arizona State University to launch a venture studio aimed at supporting student-athletes in developing their entrepreneurial skills, providing them with tools and mentorship to capitalize on their name, image, and likeness rights. This initiative is part of GoDaddy’s global social impact program, Empower by GoDaddy, which seeks to accelerate the entrepreneurial journey of young innovators.
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