Market Overview

Deutsche Bank Reiterates Buy On GoDaddy Into Q4 Earnings

Share:

Deutsche Bank issued an update on Godaddy Inc (NYSE: GDDY) ahead of the company's earnings report after Thursday's market close. Analysts reiterated their Buy rating and $34 price target.

Deepak Mathivanan and Ross Sandler wrote, "GDDY is the best-positioned company in the website presence sector given its dominant competitive position and still has plenty of opportunity to upsell incremental higher ARPU products to its 14m customer base."

Deutsche Bank gave two key reasons why they believe Godaddy will show strength in 2016.

1. Revenue growth

Analysts at Deutsche Bank expect FY16 revenue growth of 14 percent year-over-year, which is driven by 8 percent growth in total customers and 5 percent growth in ARPU. Deutsche Bank believes that Godaddy can continue to expand its revenue base, particularly with its business applications offered to domain customers.

2. Profitability

Deutsche Bank noted that Godaddy may be able to drive margin expansion by aligning its product mix toward a higher margin web presence and business applications. Furthermore, the company has the potential to manage advertising spending in a way that maximizes exposure while improving profitability.

Shares of Godaddy recently traded at $29.10, up 7.42 percent.

Latest Ratings for GDDY

DateFirmActionFromTo
Aug 2019MaintainsOutperform
Feb 2019MaintainsOverweightOverweight
Feb 2019MaintainsBuyBuy

View More Analyst Ratings for GDDY
View the Latest Analyst Ratings

Posted-In: Deepak Mathivanan Deutsche Bank Ross SandlerAnalyst Color Price Target Previews Analyst Ratings Trading Ideas

 

Related Articles (GDDY)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
PTONBank of AmericaInitiates Coverage On29.0
ITRICanaccord GenuityMaintains87.0
GWPHNeedhamInitiates Coverage On200.0
BABairdDowngrades
LUVStifelDowngrades60.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

St. Jude Medical Received FDA Approval For MultiPoint Pacing Technology

UBS Maintains Buy On Nordstrom Ahead Of Q4 Earnings