On Thursday, Citi reiterated a Buy rating with a $130.00 price target on shares of GoDaddy Inc (NYSE:GDDY), as the firm continues its 30-day positive catalyst watch.
The watch follows an initial 90-day period that began on November 29, 2023, with expectations of an upside in share value following the company's Investor Day on March 6, 2024.
Citi anticipates that GoDaddy will announce new long-term targets that align with the rule of 40—an industry benchmark that suggests a company is performing well if its combined growth rate and profit margin equal or exceed 40%. The focus is on GoDaddy's ability to improve product execution, which is expected to enhance customer conversion and attach rates.
GoDaddy's performance has already surpassed expectations in terms of NEBITDA margins, and the analyst expects the company's long-term targets to further build on its projected 31% exit rate for the fourth quarter of 2024. The emphasis on margin expansion is predicted to continue to elevate estimates and multiples for the company.
The growth outlook for GoDaddy also appears promising, as the company has shown proficiency in product development. This is highlighted by the recent introduction of its GenAI-powered web builder, Airo, which is anticipated to be a key topic at the upcoming Investor Day event.
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