Citi maintains Buy on GoDaddy stock, price target at $251

On Monday, Citi reaffirmed its Buy rating for GoDaddy Inc (NYSE:GDDY) with a steady price target of $251.00. Currently trading at $212.65, the stock has shown remarkable momentum, with InvestingPro data showing a 97.5% return over the past year. Citi’s analysts highlighted their anticipation of GoDaddy delivering another quarter of robust performance, albeit with slight adjustments to estimates due to foreign exchange movements. The analysts noted that the narrative around GoDaddy has been less controversial compared to the period before the third-quarter results, with the general sentiment staying positive.

The report suggested that GoDaddy’s continued strength in bookings could potentially lead to further improvement in sentiment. Despite facing more challenging comparisons, Citi analysts see various avenues for strong bookings in 2025, including the Advertising & Commerce (A&C) sector and as GoDaddy’s Pricing and Bundling strategy extends into the Core Platform segment.

Furthermore, the analysts are keen to observe any early effects from the introduction of Airo Plus, as well as management’s projections for its contributions in 2025. They are also watching for comments on profitability and margins, especially as GoDaddy increases marketing investments for Airo in the fourth quarter and aims to reach its target of a 33% NEBITDA margin by 2026.

Citi analysts concluded that GoDaddy’s stock presents an attractive valuation, trading at approximately 15 times price to free cash flow based on 2026 estimates. According to InvestingPro’s comprehensive analysis, which includes 15+ additional ProTips and detailed valuation metrics, the stock appears slightly overvalued at current levels. They believe there is potential for an upside to top-line estimates and continued strength in free cash flow compounding. For deeper insights into GoDaddy’s valuation and growth prospects, investors can access the full Pro Research Report, available exclusively on InvestingPro.

In other recent news, GoDaddy Inc. has successfully completed a $1.46 billion refinancing deal, providing the company with enhanced financial flexibility. This significant development is part of the company’s ongoing efforts to optimize its capital structure. In addition to this, GoDaddy has experienced a boost in its Applications & Commerce segment, with a 16% growth in revenue, contributing to the company’s total revenue of $1.15 billion in the third quarter.

Analyst firms, including Baird, RBC Capital Markets, JPMorgan, and Oppenheimer, have revised their stock targets upwards, reflecting confidence in the company’s growth trajectory. Specifically, Baird increased its price target to $250, RBC Capital Markets to $230, and JPMorgan to $224.

GoDaddy has also made significant advancements with its Airo platform, introducing a premium service called Airo Plus, which is expected to provide direct monetization opportunities. This development, along with the company’s use of artificial intelligence and bundling strategies, has reportedly resulted in customers adopting secondary products 25% quicker.

Finally, GoDaddy has appointed Phontip Palitwanon as the new Chief Accounting Officer following a restructuring within the accounting department. These recent developments are part of GoDaddy’s broader internal optimization efforts, which continue to offer potential operational expenditure savings.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.