Summit Redstone Starts GoDaddy Inc (GDDY) at Buy

October 3, 2016 7:25 AM EDT
Get Alerts GDDY Hot Sheet
Price: $35.11 -0.26%

Rating Summary:
    14 Buy, 3 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 11 | Down: 20 | New: 54
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Summit Redstone initiates coverage on GoDaddy Inc (NYSE: GDDY) with a Buy rating and a price target of $41.00.

Analyst Jonathan Kees commented, "With more than a $10B addressable market in the U.S. alone targeting SMBs, GoDaddy (GDDY) has strong competitive advantages that enable market share growth and leadership. The advantages include a well-known brand, large customer base, and significant scale, which together with targeted marketing, in-language build-out’s, and product add-on’s, should facilitate a more successful expansion overseas and growth of Average Revenue Per User (ARPU). In addition, we find the financial guidance and targets such as 2016 revenue growth and long term adjusted EBITDA margin of mid 20% achievable at the very least because its main competitors are preoccupied with major acquisitions and in our view not as focused on the market thus presenting a share opportunity and secondarily GDDY has been investing in its technology, platform, and brand allowing it flexibility to pull back on opex spending if desired in order to meet margin goals. We launch with a BUY as we believe that the consistent performance continues and that GDDY maintains its competitive position, market leadership, and financials improvement. Our $41 price target is based on 3.5x EV/2017 sales of $2.1B."

For an analyst ratings summary and ratings history on GoDaddy Inc click here. For more ratings news on GoDaddy Inc click here.

Shares of GoDaddy Inc closed at $34.53 yesterday.

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