On Wednesday, JPMorgan raised its price target for shares of GoDaddy Inc (NYSE: NYSE:GDDY) to $224.00, up from the previous target of $175.00, while maintaining an Overweight rating on the stock. The adjustment followed an event at the company's headquarters.
The stock, currently trading near its 52-week high of $202.56, has delivered an impressive 92% return over the past year. According to InvestingPro analysis, GoDaddy's shares are currently trading above their Fair Value.
The firm's analyst attended the GoDaddy Investor Dinner on Tuesday, where the company unveiled Airo Plus, a new $5 per month premium service that builds upon the existing free version of Airo. Airo has already been a significant factor in driving cross-sell opportunities for GoDaddy, and Airo Plus is expected to be directly monetizable. With a robust gross profit margin of 63.57% and revenue growth of 6.85%, GoDaddy has demonstrated strong operational efficiency.
During GoDaddy's March Investor Day, the company had discussed strategies to significantly increase the lifetime value of domain customers by offering additional services such as websites, marketing, and commerce products. The company's ongoing organic product development is anticipated to enhance this value further.
The recent investor event provided JPMorgan with a stronger conviction in the long-term growth prospects of GoDaddy's Application & Commerce segment. This segment is also noted for being the more profitable side of the business.
As a result of the insights gained from the investor dinner and the potential for increased revenue and profitability, JPMorgan has increased their December 2025 earnings projection for GoDaddy by 28%, setting the new price target at $224 per share.
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In other recent news, GoDaddy Inc. reported a 7% year-over-year increase in total revenue for the third quarter, reaching $1.15 billion. The company's Applications & Commerce segment saw a 16% growth in revenue, leading to an increase in its full-year revenue guidance.
Additionally, Baird reiterated its Outperform rating on GoDaddy shares, raising the price target from $200 to $225, reflecting confidence in the company's growth potential.
In terms of personnel, GoDaddy appointed Phontip Palitwanon as the new Chief Accounting Officer following a restructuring within the accounting department. The company also introduced a generative AI-powered conversational bot, improving customer service efficiency, and launched Airo, a new product that has engaged nearly 3 million customers.
These recent developments highlight GoDaddy's ongoing efforts to innovate and expand its market presence. The company repurchased 5.2 million shares for $668 million, reducing gross shares outstanding by 23% since January 2022.
Despite anticipating tougher comparisons for Applications & Commerce's annual recurring revenue in the future, GoDaddy plans to increase marketing investments for broader Airo launches and focus on pricing, bundling, and customer value enhancement.
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