Oppenheimer Believes GoDaddy (NYSE: GDDY) Still Has Room to Grow


In a report released today, Jason Helfstein from Oppenheimer maintained a Buy rating on GoDaddy (NYSE: GDDY), with a price target of $80. The company’s shares closed yesterday at $65.96, close to its 52-week high of $66.80.

Helfstein said:

“We are maintaining our Outperform rating and increasing price target to $80 after GDDY reported strong 1Q:18 results and increased FY18 revenue guidance. U.S. revenues +14% y/y, the highest growth since 2Q:16. Intl. organic growth high-teens, also impressive. Company continues to execute well, targeting 500M+ addressable independent ventures. Key metrics exceeded in 1Q: revenue, EBITDA and unlevered cash flow (UFCF). Organic ARPU and business segments all accelerated vs. 4Q. Domestic growth driven by improved product offerings, effective conversion in the sales funnel and outbound sales existing customers; international saw highest y/y growth as GDDY deepens offering in 50 local markets. New target based on 20x ’19E FCF/share estimate of $4.02. Shares still look undervalued relative to near-term growth and long-term opportunity.”

According to TipRanks.com, Helfstein is a top 100 analyst with an average return of 18.3% and a 66.7% success rate. Helfstein covers the Technology sector, focusing on stocks such as Endurance International, ANGI Homeservices Inc, and IAC/InterActiveCorp.

Currently, the analyst consensus on GoDaddy is Strong Buy and the average price target is $69.45, representing a 5.3% upside.

In a report issued on May 7, Jefferies also reiterated a Buy rating on the stock with a $76 price target.

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The company has a one-year high of $66.80 and a one-year low of $38.34. Currently, GoDaddy has an average volume of 1.51M.

Based on the recent corporate insider activity of 185 insiders, corporate insider sentiment is negative on the stock. Most recently, in March 2018, Kkr 2006 Gp Llc, a Major Shareholder at GDDY sold 5,000,000 shares for a total of $296,050,000.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

GoDaddy, Inc. engages in the provision of domain name registration and web hosting services. It provides website building, hosting, and security tools. The company was founded by Robert R. Parsons on January 1997 and is headquartered in Scottsdale, AZ.

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