The Long-Term Bullish Story For GoDaddy Remains Intact

Internet domain service provider GoDaddy Inc GDDY has been on a hot streak since the company released its Q2 report. Shares are up 20 percent compared to the S&P 500, which dropped about 1 percent during the same time frame.

Leading into GoDaddy 's Q3 earnings report, Deutsche Bank expects results to fall in line with consensus estimates and feels confident about the company's prospects heading into FY 2017.

"Our long-term bullish stance on GoDaddy remains intact, and we see plenty of runaway left for the company to generate steady double-digit top-line growth," the firm said.

The risk-reward spread remains attractive for GoDaddy, given its "faster growth, stable business model and dominant position in the sector."

The analysts expect 7 percent customer growth with a 6 percent growth in average revenue per user, analysts are seeing several upsell opportunities available for GoDaddy moving into the next fiscal year.

Deutsche Bank maintained its Buy rating while substantially raising its price target on GoDaddy, up to $42 from $30.