GoDaddy stock target cut to $210 by Cantor Fitzgerald

On Friday, GoDaddy Inc (NYSE: NYSE:GDDY) experienced a decline in its stock price following a revision of its price target by Cantor Fitzgerald. The firm's analyst, Deepak Mathivanan, adjusted the price target to $210 from the previous $223 while maintaining a Neutral rating on the company's shares. According to InvestingPro data, GoDaddy's stock is currently trading near its 52-week high of $216, with a market capitalization of $29.8 billion. The analysis suggests the stock may be overvalued at current levels.

The adjustment came after GoDaddy reported its fourth quarter results, which the analyst described as solid. Mathivanan noted that GoDaddy is performing well with its key product and merchandising initiatives. These efforts are expected to contribute to robust bookings growth in 2025. The company has demonstrated strong performance, with InvestingPro data showing a remarkable 90.5% return over the past year and maintaining a "GREAT" overall financial health score.

Despite the strong performance, GoDaddy's shares traded down by 4% after market close, a movement that stood in contrast to the relatively stable Nasdaq futures at the time. The dip in share price is attributed to the limited upside presented in the company's forecast for fiscal year 2025 compared to previous estimates by Wall Street. InvestingPro subscribers have access to 14 additional exclusive tips about GoDaddy's valuation and financial health, helping investors make more informed decisions.

Mathivanan expressed a belief that GoDaddy's fundamental outlook remains strong, despite the short-term reaction in the stock market. The company's ongoing execution of its strategic initiatives appears to be laying the groundwork for future growth, as indicated by the analyst's comments.

Investors responded to the revised price target and guidance with a modest sell-off, reflecting the immediate impact of the new information on the market's valuation of GoDaddy. The company's next steps will be closely watched to see if its strategic initiatives can indeed drive the expected bookings growth and potentially improve investor sentiment.

In other recent news, GoDaddy Inc. has been the subject of analyst attention, with Raymond (NSE:RYMD) James and Citi both raising their stock price targets for the company. Raymond James' new target is set at $235, up from $230, while Citi increased its target to $260 from $251. Both firms maintain positive ratings for GoDaddy, following the company's strong fourth-quarter performance, which included a significant 17% growth in Applications and Commerce (A&C) bookings.

GoDaddy's recent developments include the successful launch of the Airo Plus suite, a product set that includes AI-powered marketing and advanced design tools. The company's Airo AI monetization path has also been progressing more rapidly than anticipated. Citi analysts anticipate a significant contribution from Pricing & Bundling initiatives in both the A&C and Core Product segments by 2025.

Despite missing earnings estimates, GoDaddy reported a revenue beat in the fourth quarter, with revenue reaching $1.19 billion, slightly above analysts' projections and up by 8.4% year-over-year. The company's outlook for 2025 suggests sustained momentum, with first-quarter revenue forecast between $1.175 billion and $1.195 billion. GoDaddy's strong generation of free cash flow per share, compounding at a rate of over 25%, was another highlight of the report. These are some of the recent developments for GoDaddy Inc.

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