Benchmark raises GoDaddy price target to $230; retains buy rating

Thursday - Benchmark analysts have raised their price target on GoDaddy Inc (NYSE:GDDY) shares to $230 from $200, while maintaining a Buy rating on the stock. The stock has shown remarkable strength, delivering an 83.61% return over the past year and currently trading near its 52-week high of $216. According to InvestingPro analysis, the company maintains a GREAT financial health score. The adjustment comes as GoDaddy is set to report its fourth-quarter earnings later today.

The company’s anticipated earnings report follows a previous quarter that, according to Benchmark, suggested a sequential decrease in adjusted EBITDA despite a revenue shift toward more lucrative Applications & Commerce (A&C) offerings. Benchmark analysts, in their assessment, anticipate that GoDaddy’s operational expenses will decrease due to increased automation and offshoring, alongside a continued shift in revenue mix towards A&C.

The analysts expect these changes to contribute positively to GoDaddy’s financial performance. They project that the company’s 2026 estimated net EBITDA margin guidance of approximately 33% may be significantly understated, implying that GoDaddy could outperform its own margin forecasts.

Mark Zgutowicz, the Benchmark analyst, highlighted the company’s potential, stating, "As its opex base implements automation broadly and offshoring/accretive revenue mix-shift towards A&C continues, we continue to view ˜26E NEBITDA margin guidance of ~33% as grossly conservative." This statement underscores the firm’s confidence in GoDaddy’s strategic direction and its ability to enhance profitability.

Investors and analysts alike will be closely watching GoDaddy’s earnings report later today to gauge the company’s financial health and to see if the performance aligns with Benchmark’s optimistic outlook. For deeper insights into GoDaddy’s valuation and growth prospects, investors can access comprehensive analysis and 14 additional key insights through InvestingPro’s detailed research reports.

In other recent news, GoDaddy Inc. has been the subject of various analyst evaluations and has secured a significant refinancing deal. Piper Sandler maintained a Neutral rating on GoDaddy’s stock with a $176 price target, expressing caution about the sustainability of the stock’s recent performance. Wells Fargo (NYSE:WFC) initiated coverage on GoDaddy with an Equal Weight rating and a $198 price target, highlighting the company’s recent surge in its Applications & Commerce segment growth. Citi reaffirmed a Buy rating on GoDaddy’s stock with a $251 price target, anticipating another quarter of robust performance from the company.

Meanwhile, Baird maintained its Outperform rating on GoDaddy and increased its price target to $250, following insights gained from an investor dinner with the company’s senior leaders. In addition to the analyst evaluations, GoDaddy recently completed a refinancing of its existing credit facilities, securing a new $1.46 billion tranche of term loans. These developments reflect recent activities and assessments surrounding GoDaddy, providing investors with a snapshot of the company’s current financial standing and performance.

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