Why GoDaddy's 2024 Margin Expectations Are Undervalued: Analyst Revises Price Target
Portfolio Pulse from Nabaparna Bhattacharya
B. Riley Securities analyst Naved Khan has reiterated a Buy rating on GoDaddy Inc. (NYSE:GDDY), raising the price target to $107 from $102. Khan believes that the current Street expectations for 2024 EBITDA margin (26.5%) are too low, with management reiterating 28% as a 'floor' for margin next year. The analyst is also bullish on the prospects of a pickup in revenue growth and its sustainability, given the strength in underlying drivers. The analyst raised the FY23 EPS estimate to $2.57 from $2.54. FY23 revenue estimates stand at $4.257 billion.
September 13, 2023 | 6:35 pm
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GoDaddy's price target has been raised by B. Riley Securities analyst Naved Khan, who believes the company's 2024 EBITDA margin expectations are undervalued. Khan also raised the FY23 EPS estimate and is bullish on the company's revenue growth prospects.
The analyst's positive outlook on GoDaddy's 2024 EBITDA margin and revenue growth prospects, along with the raised price target and FY23 EPS estimate, could potentially drive the company's stock price up in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100