William Blair analyst Arjun Bhatia has maintained their bullish stance on GDDY stock, giving a Buy rating on May 1.
Arjun Bhatia has given his Buy rating due to a combination of factors that indicate a strong performance and promising outlook for GoDaddy. The company’s first-quarter revenue not only surpassed consensus estimates by $12 million but also showcased a 7% growth year-over-year. Additionally, GoDaddy’s adjusted EBITDA margin outperformed expectations by 100 basis points, reaching 28%. The Applications and Commerce segment, in particular, demonstrated notable momentum with its bookings accelerating to a robust 22%, contributing to an overall bookings growth nearing 10%. Bhatia recognizes these results as a testament to the effective pricing and bundling strategies implemented by management, as well as the significant growth within the Commerce segment, where Gross Payment Volume (GPV) has exceeded $2 billion.
Further bolstering the Buy rating, Bhatia emphasizes the positive developments in GoDaddy’s product offerings, including the recent rollouts of Airo and GABI which are still in the early stages but have already sparked enthusiasm. The management’s decision to raise the lower end of its full-year revenue guidance reflects confidence in the company’s trajectory. Bhatia also notes the company’s continued progress in key initiatives such as enhancing product attachment rates and improving margins. With shares trading at 14 times the firm’s 2025 Free Cash Flow (FCF) estimate, Bhatia sees potential for an upward re-rating as the market gains confidence in GoDaddy’s long-term FCF growth profile. Despite acknowledging risks such as a macroeconomic slowdown, heightened competition, and changes in domain registration structures, the overall assessment leads to the maintenance of an Outperform rating.
In another report released on May 1, Benchmark Co. also reiterated a Buy rating on the stock with a $150.00 price target.
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GoDaddy (GDDY) Company Description:
GoDaddy, Inc. engages in the provision of domain name registration and web hosting services. It provides website building, hosting, and security tools. The company was founded by Robert R. Parsons on January 1997 and is headquartered in Scottsdale, AZ.
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