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On Tuesday, JPMorgan updated its outlook on GoDaddy Inc (NYSE:GDDY), increasing the price target to $240 from the previous $231, while reaffirming an Overweight rating on the shares. The adjustment follows recent investor meetings in New York with GoDaddy’s Chief Financial Officer, Mark McCaffrey, and Investor Relations representative, Christie Masoner. With a current market capitalization of $26 billion and trading at $182.19, InvestingPro analysis indicates the stock is currently trading above its Fair Value.
During these meetings, discussions focused on several strategic aspects of GoDaddy’s business, including pricing and bundling strategies, efforts to attract high-intent customers, and insights from a small business survey. The survey findings had been touched upon in a public call last week and were now shared in full detail.
Analysts from JPMorgan expressed a reinforced belief in the long-term growth potential of GoDaddy after the meetings. They highlighted a forecast for the company’s revenue to expand by 6-8% during the years 2024 to 2026. Additionally, they anticipate a compound annual growth rate (CAGR) of 20% in free cash flow per share for the same period.
The revised price target represents a 4% increase and is based on the firm’s increased confidence in GoDaddy’s growth trajectory. The company’s stock is currently trading at a multiple of 18 times its estimated 2025 earnings before interest, taxes, depreciation, and amortization (EV/EBITDA).
The Overweight rating by JPMorgan indicates their expectation that GoDaddy’s stock will outperform the average return of the stocks analyzed by the firm over the next six to twelve months. The price target increase reflects the firm’s view that GoDaddy is well-positioned for sustainable growth in the foreseeable future.
In other recent news, GoDaddy Inc. reported strong financial results for the first quarter of 2025, with earnings per share (EPS) of $1.51, surpassing analyst expectations of $1.38. Revenue also exceeded projections, reaching $1.2 billion, an 8% year-over-year increase. Cantor Fitzgerald analysts responded by raising their price target for GoDaddy to $190 from $185, maintaining a Neutral rating, while Benchmark reiterated a Buy rating with a $250 target. Analysts noted GoDaddy’s advancements in artificial intelligence as a significant factor in lowering service barriers for clients with over $1 million in annualized Gross Merchandise Volume (GMV).
GoDaddy’s bookings grew by 9% year-over-year, excluding foreign exchange impacts, and the company saw a 26% increase in free cash flow, amounting to $411 million. The company’s annual recurring revenue rose by 7%, highlighting strong customer retention. Additionally, GoDaddy repurchased approximately $770 million of its stock in the first quarter and announced a new $3 billion share repurchase authorization through 2027. The firm’s strategic focus on AI and pricing and bundling strategies were highlighted as key initiatives driving growth. Despite macroeconomic uncertainties, GoDaddy has not observed a significant impact on demand for its services, and the company’s guidance for the second quarter aligns with previous estimates.
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