Update shared on 28 Nov 2025
GoDaddy's analyst price target was reduced to $150 from $175, as analysts cited mixed guidance for the upcoming quarter and a need for improved visibility into the company's mid-term growth and margin outlook. This comes despite strong recent results.
Analyst Commentary
Analysts have recently updated their outlook on GoDaddy following the company's latest quarterly results and guidance. The updates reflect both confidence in the company's execution and some caution around future growth expectations.
Bullish Takeaways- Bullish analysts highlight GoDaddy’s year-over-year A&C (Applications & Commerce) bookings growth of 14%, which surpassed market expectations.
- Recent quarterly performance showed solid revenues and strong Aftermarket domain sales. These factors contributed to a beat on key financial metrics such as NEBITDA and free cash flow.
- Fundamentals are seen as tracking ahead of previously established mid-term guidance. This indicates operational execution is staying robust despite guidance adjustments.
- Bullish analysts continue to assign high ratings due to confidence in sustained business momentum and favorable underlying trends in the core business.
- Bears note that the latest price target revisions downward reflect concerns about reduced visibility into GoDaddy’s mid-term growth and margin outlook.
- The outlook for Q4 A&C revenue is now for low-to-mid teens percentage growth, a step down from the mid-teens levels previously seen, as the company faces tough year-over-year comparisons.
- Guidance for Q4 was considered mixed, with EBITDA only meeting, rather than exceeding, Street estimates and revenue guidance coming in just slightly above consensus.
- Some analysts express caution and maintain a neutral stance until there is clearer evidence of how margin performance and top-line growth will trend in the coming quarters.
What's in the News
- GoDaddy expands its Airo.ai online experience with six new AI agents to help small businesses manage marketing, operations, and websites more efficiently, featuring tools such as Conversations Inbox, Marketing Calendar, and Domain Protection. (Key Developments)
- The company announces progress on its Agent Name Service (ANS), a trusted identity naming system for AI agents, now available with an open API and a new standards site for developers. (Key Developments)
- GoDaddy launches Airo.ai, a Beta AI-powered platform that turns simple conversations into business tasks, such as domain registration, website setup, and logo creation for small businesses. (Key Developments)
- The company introduces its Digital Ads feature with GoDaddy Airo to nine new international markets, enabling entrepreneurs to rapidly create Google Ad campaigns without prior experience. (Key Developments)
- GoDaddy raises its 2025 revenue growth guidance to 8%, at the upper end of its projected range, citing ongoing business momentum. (Key Developments)
Valuation Changes
- Fair Value: Stable at $175.06, with no change from the previous estimate.
- Discount Rate: Increased slightly from 9.60% to 9.66%.
- Revenue Growth: Remains unchanged at approximately 6.74%.
- Net Profit Margin: Stable, holding at 22.14%.
- Future P/E Ratio: Decreased slightly from 21.10x to 20.78x.
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.