GoDaddy upgraded to Outperform from Sector Perform at RBC Capital

RBC Capital upgraded GoDaddy to Outperform from Sector Perform with a price target of $124, up from $90. The analyst likes the company’s “structurally hedged” customer acquisition model and has rising confidence in margin expansion coming out of RBC’s conference. GoDaddy’s generative artificial intelligence-focused dinner next week “is timely” and the mid-Q1 analyst day should improve visibility into the company’s strong long-term earnings and free cash flow generation, the analyst tells investors in a research note. RBC calls GoDaddy an “under-owned, durably growing cash machine.”