Piper Sandler maintains GoDaddy stock at Neutral with $176 target

GoDaddy (NYSE:GDDY)’s Productivity segment, which is estimated to generate around $1.1 billion in revenue, has been a major contributor to the growth in the Applications & Commerce sector, accounting for nearly 80% of its expansion in 2024. However, Piper Sandler anticipates that the growth rate for Applications & Commerce in fiscal year 2025 will fall short of the current consensus of 14.4%. This is due to the high base effect created by the previous year’s price increase. InvestingPro data shows the company’s overall revenue growth at 6.85%, with total revenue reaching $4.48 billion in the last twelve months.The firm also predicts that GoDaddy will face its first difficult comparison in terms of Bookings as early as the first quarter of 2025. This could potentially put pressure on the company’s financial performance, as it tries to match or exceed the strong results from the prior year. Piper Sandler’s stance reflects a conservative outlook on GoDaddy’s stock, suggesting that investors might need to temper their expectations for the company’s growth in the near future.

GoDaddy’s Productivity segment, which is estimated to generate around $1.1 billion in revenue, has been a major contributor to the growth in the Applications & Commerce sector, accounting for nearly 80% of its expansion in 2024. However, Piper Sandler anticipates that the growth rate for Applications & Commerce in fiscal year 2025 will fall short of the current consensus of 14.4%. This is due to the high base effect created by the previous year’s price increase. InvestingPro data shows the company’s overall revenue growth at 6.85%, with total revenue reaching $4.48 billion in the last twelve months.The firm also predicts that GoDaddy will face its first difficult comparison in terms of Bookings as early as the first quarter of 2025. This could potentially put pressure on the company’s financial performance, as it tries to match or exceed the strong results from the prior year. Piper Sandler’s stance reflects a conservative outlook on GoDaddy’s stock, suggesting that investors might need to temper their expectations for the company’s growth in the near future.

GoDaddy’s Productivity segment, which is estimated to generate around $1.1 billion in revenue, has been a major contributor to the growth in the Applications & Commerce sector, accounting for nearly 80% of its expansion in 2024. However, Piper Sandler anticipates that the growth rate for Applications & Commerce in fiscal year 2025 will fall short of the current consensus of 14.4%. This is due to the high base effect created by the previous year’s price increase.

The firm also predicts that GoDaddy will face its first difficult comparison in terms of Bookings as early as the first quarter of 2025. This could potentially put pressure on the company’s financial performance, as it tries to match or exceed the strong results from the prior year. Piper Sandler’s stance reflects a conservative outlook on GoDaddy’s stock, suggesting that investors might need to temper their expectations for the company’s growth in the near future.

In other recent news, GoDaddy has experienced several significant developments. The company’s third-quarter results showed a year-over-year increase in total revenue by 7%, reaching $1.15 billion. This is primarily attributed to a 16% growth in the Applications & Commerce segment. Wells Fargo (NYSE:WFC) initiated coverage on GoDaddy, setting the stock at an Equal Weight rating with a target of $198. Similarly, Citi reaffirmed its Buy rating with a steady price target of $251, while Baird and RBC Capital Markets raised their price targets, citing confidence in GoDaddy’s growth potential. Oppenheimer reiterated a Perform rating, emphasizing the positive impact of GoDaddy’s recent offerings on customer engagement and monetization.

GoDaddy also completed a strategic $1.46 billion refinancing of its existing credit facilities, expected to enhance financial flexibility. This move is part of the company’s ongoing efforts to optimize its capital structure and reduce the cost of capital.

The company 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. Lastly, GoDaddy appointed Phontip Palitwanon as the new Chief Accounting Officer following a restructuring within the accounting department.

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