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Investing.com - Cantor Fitzgerald has maintained its Neutral rating and $150.00 price target on GoDaddy Inc (NYSE:GDDY) despite the stock’s significant underperformance against the NASDAQ this year. According to InvestingPro data, the stock is currently trading near its 52-week low of $132.51, with a market cap of $18.9 billion.
GoDaddy shares have lagged the NASDAQ by 48 points year-to-date, primarily due to multiple compression stemming from perceived threats of vibe coding technology to the company’s business model, according to Cantor Fitzgerald.
The firm believes GoDaddy’s small and medium-sized business offerings, including domains, hosting, and DIY website building, are unlikely to be displaced by vibe coding, given the complexity of building and managing an online presence for SMBs.
Cantor Fitzgerald projects that GoDaddy has sufficient levers to maintain mid-single-digit top-line growth while delivering steady margin expansion and free cash flow growth in the low-to-mid teens range over the next 3-5 years.
The research firm notes that GoDaddy’s current valuation at 9x FY26 estimated free cash flow per share could make it an attractive private equity target, potentially supporting a take-private premium of approximately 30% (around $180 per share) with compelling internal rate of returns near 15%.
In other recent news, GoDaddy has been the focus of several analyst reviews and business developments. Benchmark maintained its Buy rating with a $250 price target, highlighting the company’s strong operational efficiencies and AI initiatives, which have allowed revenue to grow at twice the rate of operating expenses. Piper Sandler upgraded GoDaddy from Neutral to Overweight, raising the price target to $182, citing the company’s consistent business model despite a recent 32% share retreat. Meanwhile, UBS lowered its price target for GoDaddy to $160, maintaining a Neutral rating due to concerns about AI competition and aligning free cash flow multiples with market estimates.
Additionally, GoDaddy launched a merchant cash advance program called GoDaddy Capital, offering up to $1 million to small businesses within 24 hours, exclusively for GoDaddy Payments users. This program features a flexible repayment structure based on a fixed percentage of daily sales. Analysts from Benchmark reiterated a Buy rating after GoDaddy’s second-quarter results, which met expectations for growth in Applications & Commerce bookings in the latter half of the year. These developments underscore the company’s ongoing efforts to enhance its financial and operational strategies.
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