© Reuters. GoDaddy (GDDY) shares are ‘under-owned’ – RBC Capital
RBC Capital upgraded shares of GoDaddy (NYSE:) to Outperform from Sector Carry out in a observe Wednesday, elevating the worth goal to $124 per share, up from $90.
Analysts informed buyers that the corporate is “structurally differentiated” and under-owned.
“GDDY’s an under-owned, durably growing cash machine with a dash of AI,” wrote the analysts. “We like its structurally hedged customer acquisition model, have rising confidence in margin expansion coming out of our conference and lastly, like management’s openness to increasingly managing top-line expectations.”
The analysts additionally famous that the corporate’s generative AI-focused dinner subsequent week is well timed, whereas the mid-Q1 analyst day ought to enhance visibility into the corporate’s sturdy long-term earnings and free money circulate technology.
“The stock could be viewed as trading at mid-single digit multiple on very reachable longer-term assumptions,” added the analysts.
