GoDaddy To Gain 'Outsized' Benefits From AI Tools: Analyst
Portfolio Pulse from Lekha Gupta
RBC Capital Markets analyst Brad Erickson upgraded GoDaddy Inc (NYSE:GDDY) to Outperform from Sector Perform and increased the price target to $124 from $90. Erickson highlighted GoDaddy's potential to benefit 'outsizedly' from AI tools, which could reduce customer acquisition friction. Despite the web design industry's top-of-funnel trends underperforming, GoDaddy's customer acquisition channel is seen as a tailwind. The analyst also expects cost synergies from workload migration/unification and ties heavy product development investments to potential revenue growth. Revenue and adjusted EBITDA forecasts for FY23 are $4.255 billion and $1.124 billion, and for FY24, $4.61 billion and $1.377 billion, respectively. GoDaddy's Q3 FY23 results exceeded expectations, with revenue of $1.070 billion and EPS of $0.89. Following the news, GDDY shares rose by 2.85% to $95.51.
November 22, 2023 | 6:19 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
GoDaddy Inc was upgraded by RBC Capital Markets to Outperform with a price target of $124, citing potential benefits from AI tools and a strong customer acquisition channel. The company's Q3 FY23 results exceeded expectations, which could further support the stock's performance.
The upgrade by RBC Capital Markets to an Outperform rating and the increase in price target to $124 are strong positive signals for investors, indicating analyst confidence in GoDaddy's growth prospects, especially with the integration of AI tools. The recent earnings beat for Q3 FY23 further supports the positive outlook, which is likely to have a favorable impact on the stock price in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100