Market Overview

Are You A GoDaddy Investor? Here's What Should Help You In 2016

  • Godaddy Inc (NYSE: GDDY) shares have appreciated 13 percent since September 17.
  • Deutsche Bank’s Deepak Mathivanan maintained a Buy rating on the company, with a price target of $33.
  • High brand awareness and GoDaddy’s presence on multiple on-ramp paths should allow growth without affecting unit economics, Mathivanan stated.

GoDaddy is a leading player in the website presence and tools provider space. The company is expected to report robust 3Q results, with net revenues of $407 million and EBITDA of $84 million, with YoY bookings growth of 14 percent.

Analyst Deepak Mathivanan expects GoDaddy to report net customer adds of around 260 K, up 9 percent YoY and ARPU growth of 7 percent YoY. The company is also expected to guide to 4Q revenues of $425 million.

Mathivanan mentioned that GoDaddy made significant product enhancements in 3Q on its DIY site builder, business applications and web pro offerings. He added that the company integrated several business applications into email marketing, shipping solution and security certificate directly into its online store site builder product.

“GoDaddy Pro already has over 50k users and our early checks with many web professionals are largely positive on the product,” the Deutsche Bank report noted. The key themes driving the company’s growth in the website presence sector are tracking well in 2015.

Despite intense competition in the media channels segment, companies like GoDaddy are capable of generating growth without impacting their unit economics, given the “strong presence on multiple on-ramp paths and high brand awareness,” Mathivanan stated.

Latest Ratings for GDDY

Aug 2019MaintainsOutperform
Feb 2019MaintainsOverweightOverweight
Feb 2019MaintainsBuyBuy

View More Analyst Ratings for GDDY
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Posted-In: Deepak Mathivanan Deutsche BankAnalyst Color Reiteration Analyst Ratings


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