On Thursday, Citi expressed confidence in GoDaddy Inc (NYSE:GDDY), increasing the stock's price target to $139 from $130 while maintaining a Buy rating. The adjustment came after the firm's analysts attended GoDaddy's Investor Day at the company's headquarters in Tempe, Arizona.
The firm's analyst highlighted several key takeaways from the event, with investors particularly focused on GoDaddy's mid-term targets. The targets slightly surpassed sell-side expectations, although they aligned more closely with those of the buy-side.
The guidance provided by GoDaddy was deemed conservative by the analyst, especially as it did not fully account for potential contributions from its new Airo (GenAI) Commerce capabilities.
GoDaddy's Airo Commerce, which was showcased during the Investor Day, was noted for its potential to differentiate the company's offerings. The new service aims to simplify the process of creating a broader commerce presence for customers who initially sign up for a domain. This simplification is expected to enhance GoDaddy's multi-product attach rates.
The analyst also pointed out that the guidance did not consider the multiple pricing opportunities that Airo could introduce, such as usage-based paywalls and dynamic/value-based pricing models. Additionally, the language surrounding potential share buybacks was described as conservative.
In light of these observations, Citi has slightly increased its estimates for GoDaddy's performance. The firm sees potential for upside based on the strength of the product offerings and the possibility of an improving macroeconomic environment.
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