©Reuters.
On Wednesday, Wolf Research adjusted its outlook on GoDaddy Inc. (NYSE:), increasing its price target to $126 from $122 while maintaining its performance rating on the stock. The decision follows GoDaddy's fourth-quarter earnings report, which revealed bookings were slightly 2% lower than expected and revenue met analyst expectations. The company's EBITDA for the quarter exceeded expectations by 2% due to continued cost control efforts.
GoDaddy's initial outlook for 2024 was mixed, with revenue forecasts 1% below the midpoint of street estimates. Part of this conservative forecast is due to ongoing optimizations within the company's core platform. Despite this, GoDaddy expects his 2024 fiscal year free cash flow (FCF) to be strong, at least $1.2 billion, up 11% year-over-year.
The company is making positive progress in its commerce efforts, especially with early indicators for its newest product, Airo. GoDaddy continues to prioritize improving margins and free cash flow. The market is awaiting further details on GoDaddy's product roadmap, financial goals and capital allocation plans, which are expected to be shared at his March 6 investor day.
GoDaddy's stock price fell 1% in off-market trading following the earnings report, contrasting with the flat performance of Nasdaq futures over the same period. Wolfe Research highlighted the attractiveness of GoDaddy's valuation, citing a free cash flow yield of 10% for fiscal year 2025. The revised price target reflects the company's recognition of its steady progress and potential for continued financial improvement.
Investment Pro Insights
GoDaddy Inc (NYSE:GDDY) has attracted the attention of investors and analysts for its recent financial performance and strategic initiatives. Wolf Research's price target update comes as GoDaddy is showing signs of solid fundamentals, which are also reflected in InvestingPro data. The company's management has been aggressively buying back its own shares, demonstrating confidence in the company's future, a sentiment echoed by investors given the stock's high shareholder yield and strong gains over the past three months. It might be emotion.
InvestingPro Data highlights GoDaddy's solid financial metrics, with an impressive market capitalization of $15.55 billion and a solid P/E ratio of 11.22 (adjusted for trailing twelve months as of Q4 2023). This low PEG ratio of 0.03 suggests that the company's earnings growth is not currently reflected in its price, which could present an opportunity for investors. Despite trading at a high price/book multiple of 194.9, GoDaddy has grown its earnings by 3.98% over the past 12 months, indicating steady growth in sales.
InvestingPro Tips further reveals that GoDaddy is trading near its 52-week high and has experienced significant price appreciation over the past six months, indicating an optimistic view of the market. Analysts expect the company to be profitable this year, a prediction backed up by profitability over the past 12 months. These insights are especially important for investors seeking growth opportunities and stability in their portfolio selection.
For those looking to learn more about GoDaddy's financial health and future prospects, InvestingPro has additional tips. To access these insights and make informed investment decisions, visit his GoDaddy page on InvestingPro.Additionally, users can avail special offers using coupon codes pro news 24 Get an extra 10% off annual or biennial Pro and Pro+ subscriptions.
It's worth noting that GoDaddy doesn't pay dividends to its shareholders. This can impact investment strategies for people seeking a regular source of income. However, the company's strong returns over the past decade may be attractive to growth-focused investors. A further 13 of his InvestingPro tips are available, providing a wealth of information for those who want a comprehensive understanding of GoDaddy's market position and potential.
This article was generated with the help of AI and reviewed by an editor. Please see our Terms of Use for more information.
