Raymond James lifts GoDaddy stock target to $235, keeps Strong Buy

On Friday, Raymond (NSE:RYMD) James analyst Josh Beck increased the price target for GoDaddy Inc (NYSE: NYSE:GDDY) shares, setting the new goal at $235, up from the previous $230, while reiterating a Strong Buy rating for the company. The stock, currently trading at $212.54, has delivered an impressive 90.5% return over the past year and sits near its 52-week high of $216. According to InvestingPro analysis, the company maintains a "GREAT" financial health score of 3.3 out of 5. Beck's optimism comes on the heels of GoDaddy's strong performance in the fourth quarter, which saw a notable 17% growth in Applications and Commerce (A&C) bookings. This uptick was previewed in the company's recent quarterly report.

The analyst praised GoDaddy's execution, particularly highlighting the development of its Airo AI monetization path, which is advancing more rapidly than anticipated. The success of this initiative is partly attributed to better-than-expected awareness and engagement statistics, which have been instrumental in driving 50% of website starts.

Beck also noted the recent launch of the Airo Plus suite during the fourth quarter. This suite includes AI-powered marketing, enhanced site-building capabilities, and advanced logo design tools. The product suite gained additional exposure during the Super Bowl, and while it's still in the early stages, Beck pointed out encouraging signs of early customer attachment and retention, which he refers to as "greenshoots."

These positive developments are expected to contribute to a sustained increase in the adoption of multiple products by customers. Beck observed an upward trend in the mix of customers using two or more products. He anticipates that these factors will help GoDaddy maintain a durable mid-teens or better growth rate in its A&C segment.

In other recent news, GoDaddy Inc. has been the focus of analysts' attention following the release of its fourth-quarter results. The web hosting company's earnings fell short of expectations, posting an adjusted earnings per share of $1.36, compared to the projected $1.43. However, it managed to surpass revenue expectations with a reported $1.19 billion, slightly above the estimated $1.18 billion.

Citi analysts have responded to these developments by raising their price target for GoDaddy from $251 to $260, maintaining a Buy rating on the stock. They noted the company's conservative yet promising initial guidance for 2025 and highlighted the strong generation of free cash flow per share, which is compounding at a rate of over 25%.

The analysts also underscored GoDaddy's product development successes, with offerings like Airo/GenAI gaining momentum and customers showing a higher propensity to purchase additional products. GoDaddy's management anticipates a significant contribution from Pricing & Bundling initiatives in both the A&C and Core Product segments by 2025.

These are recent developments that have drawn attention to the company's performance and future prospects. It's important to note that these facts are based on the company's recent earnings report and the analysis provided by Citi.

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