GoDaddy: Raymond James Downgrades to Strong Buy with $175 PT, from $225.

GoDaddy: Raymond James Downgrades to Strong Buy with $175 PT, from $225.

Raymond James has revised its price target for GoDaddy Inc (NYSE: GDDY) to $175.00, a significant reduction from its previous target of $225.00, while maintaining a Strong Buy rating on the stock. The stock is currently trading near its 52-week low at $150.25, down 29% over the past six months [1].

Despite the price target reduction, Raymond James remains optimistic about GoDaddy’s performance. The firm highlights GoDaddy’s steady execution and improved visibility into the company’s 2026 targets, which include 6-8% growth and 33% NEBITDA margins, along with two-year FXN bookings growth of approximately 9%. GoDaddy has demonstrated consistent performance with a 7.7% revenue growth in the last twelve months [2].

Raymond James also noted the potential of Ask Airo, a critical product release, to enhance awareness and engagement across GoDaddy’s suite of products, potentially unlocking product-led growth through improved attachment rates during the 2026-28 timeframe [1].

In its recent financial results, GoDaddy reported revenue of $1.22 billion, slightly above Street expectations of $1.21 billion, while NEBITDA reached $381.7 million, exceeding analyst estimates of $373.1 million. The company maintains a healthy gross profit margin of 64% and has received a "GOOD" Financial Health rating from InvestingPro [1].

GoDaddy provided third-quarter revenue guidance of $1.22 billion to $1.24 billion, which brackets Street expectations, and raised its free cash flow forecast from at least $1.5 billion to $1.6 billion, compared to Street estimates closer to $1.5 billion [1].

In other recent news, GoDaddy Inc. reported its second-quarter earnings, which surpassed analyst expectations. The company posted an adjusted earnings per share of $1.41, exceeding the anticipated $1.38. Revenue for the quarter was $1.21 billion, aligning with consensus expectations and showing an 8.3% year-over-year increase. Despite these positive results, investors reacted to the company’s guidance, which largely met but did not significantly surpass market forecasts, leading to a decline in shares following the earnings announcement [2].

These developments highlight GoDaddy’s recent financial activities and the market’s response to its future outlook. Analysts had predicted these figures, and the outcomes were closely watched by investors.

References:
[1] https://ng.investing.com/news/analyst-ratings/godaddy-stock-price-target-lowered-to-175-by-raymond-james-93CH-2052606
[2] https://www.investing.com/news/analyst-ratings/godaddy-stock-price-target-lowered-to-175-by-raymond-james-93CH-4179677