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GoDaddy Inc (NYSE: GDDY) has a business model that is “relatively resilient to coronavirus pressures,” its fundamentals are moving in the right direction and the stock's valuation represents an attractive entry point, according to Wedbush.
The GoDaddy Analyst
Ygal Arounian upgraded GoDaddy from Neutral to Outperform and reduced the price target from $80 to $73.
The GoDaddy Thesis
Although GoDaddy has exposure to small and medium businesses, which face risks due to the pandemic, websites and domains as likely to be the last expenses that its smaller customers will cut, Arounian said in a Monday upgrade note. (See his track record here.)
While many small and medium businesses are closed, they may continue to maintain their websites and domains, at least in the near-term, the analyst said.
These businesses will be helped by the stimulus bill, he said, adding that an increasing number of small and medium businesses will focus on having stronger websites and develop their ability to connect to customers online.
Fundamentally, GoDaddy’s business has continued to improve, Arounian said.
The company’s “website builder is getting stronger and has significantly improved from the legacy GoCentral, and its Managed WordPress offerings also continue to strengthen,” the analyst said.
GDDY Price Action
Shares of GoDaddy were up 8.43% at $56.46 at the time of publication Monday.
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Photo courtesy of GoDaddy.
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