Piper Sandler upgrades GoDaddy to Overweight, raises price target to $121

As previously reported, Piper Sandler upgraded GoDaddy to Overweight from Neutral with a price target of $121, up from $100, on a lower discount rate and higher terminal free cash multiple. With margins playing out quickly enough to position GoDaddy for a 29% NEBITDA margin exit rate in 2023 and 8% Domains bookings growth in last quarter, the firm is at a place where it can “really believe” in a reacceleration to high-single-digit growth in FY24 with 30%+ NEBITDA margin. This could finally reverse a 5-year trend of multiple compression at GoDaddy, Piper argues.