Robinhood shares gain on Q2 beat, as user and crypto growth accelerate
Investing.com - Benchmark maintained its Buy rating and $250.00 price target on GoDaddy Inc (NYSE:GDDY) on Tuesday, citing potential upside from the company’s continued mix shift toward Applications & Commerce (A&C).
The research firm noted that while its revenue and adjusted EBITDA estimates for Q2 and fiscal years 2025-2026 align with consensus and investor day targets, several growth catalysts remain underappreciated by the market. With $1.12 billion in EBITDA and the next earnings report due on August 7, investors can access detailed valuation analysis through InvestingPro’s comprehensive research report.
Benchmark identified an immediate catalyst in potential upside to GoDaddy’s guidance for flat year-over-year second-half adjusted EBITDA margins, despite the revenue mix shifting toward the more profitable A&C segment, which saw bookings accelerate by 150 basis points sequentially in Q1 on a two-year stack basis.
The firm also highlighted a longer-term catalyst in AI efficiencies that are reducing barriers to servicing clients with over $1 million in annualized Gross Merchandise Value (GMV), creating potential new revenue streams.
These AI improvements could leverage GoDaddy’s largely fixed R&D-focused A&C cost base, providing a multi-year Average Revenue Per User (ARPU) growth catalyst beyond existing pricing and bundling initiatives.
In other recent news, GoDaddy Inc. has been the focus of several analyst updates and financial assessments. The company recently reported first-quarter earnings that exceeded Wall Street’s expectations, with revenue and normalized EBITDA surpassing estimates by 1% and 2%, respectively. Analysts from Cantor Fitzgerald responded by raising their price target for GoDaddy to $190, maintaining a Neutral rating. Meanwhile, Benchmark analysts reiterated a Buy rating with a $250 price target, noting an acceleration in Applications & Commerce Bookings.
JPMorgan also adjusted its outlook, raising its price target to $240 and keeping an Overweight rating, following discussions about GoDaddy’s strategic initiatives. RBC Capital maintained an Outperform rating, emphasizing a strong free cash flow outlook and the company’s confidence in achieving over $1.5 billion in free cash flow by 2025. Citi reiterated its Buy rating with a $234 price target, suggesting potential margin outperformance despite current market concerns. These developments reflect a mix of optimism and caution among analysts regarding GoDaddy’s future performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.