Update shared on 14 Nov 2025
Fair value Decreased 6.76%Analysts have reduced their price target for GoDaddy from $187.75 to $175.06, citing cautious near-term revenue growth expectations and a desire for increased clarity on the company's mid-term growth and profit margins, even though recent performance has been solid.
Analyst Commentary
Recent analyst adjustments demonstrate a nuanced view of GoDaddy’s outlook, balancing recognition for recent performance with caution around forward expectations. The following summarizes key bullish and bearish takeaways from current Street research.
Bullish Takeaways- Bullish analysts highlight that GoDaddy’s A&C bookings growth of 14% year over year has outperformed Street expectations, signaling strong ongoing demand for its products and services.
- Despite trimmed price targets, firm ratings such as Strong Buy indicate confidence that GoDaddy’s fundamentals remain ahead of the established mid-term growth guidance.
- Solid Q3 results, specifically exceeding revenue, NEBITDA, and free cash flow projections, point to management’s ability to deliver operationally and to leverage Aftermarket domain sales for growth.
- Bearish analysts have lowered price targets, reflecting a degree of caution around near to mid-term visibility and a desire for more clarity on sustained margin improvement.
- Q4 A&C revenue guidance suggests a step down to low to mid teens growth, a moderation from prior periods, partly due to tougher year over year comparisons.
- Mixed forward guidance, where EBITDA aligns but revenue guidance is only marginally above consensus, has raised concerns about the durability of recent outperformance in the face of evolving market dynamics.
What's in the News
- GoDaddy launched Airo.ai, a new AI agent platform designed to help small businesses move from idea to execution. The platform offers tools for website creation, logo design, compliance documents, and more, with six specialized agents available at launch and additional capabilities planned. (Key Developments)
- The company expanded its Digital Ads feature, powered by GoDaddy Airo, to nine new markets. This enables small businesses to easily create and manage Google Ad campaigns with no prior experience required. (Key Developments)
- GoDaddy raised its 2025 revenue guidance to 8% growth and now projects annual revenue between $4.93 billion and $4.95 billion. (Key Developments)
- A new trusted identity naming system for AI agents was introduced. This system leverages proven internet security standards and aims to improve verification and safety for the growing AI ecosystem. (Key Developments)
- GoDaddy completed a major share buyback, repurchasing over 4.6 million shares and totaling approximately $767 million since July 2025. (Key Developments)
Valuation Changes
- Consensus Analyst Price Target has fallen from $187.75 to $175.06, reflecting a more cautious outlook.
- Discount Rate has risen slightly from 9.58% to 9.60%, indicating a marginal increase in perceived risk or required return.
- Revenue Growth expectations have declined from 7.72% to 6.74%, suggesting a more conservative growth forecast.
- Net Profit Margin is projected to improve from 21.37% to 22.14%, pointing to greater profitability expectations.
- Future P/E has dropped significantly from 25.69x to 21.10x, implying a lower valuation multiple on future earnings.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.