RBC Capital Markets has initiated coverage on GoDaddy (NYSE: GDDY) with a rating of “Sector Perform” and set a price target of $80 dollars.
The firm acknowledged the company’s strong and reliable foundation but mentioned that there are still potential opportunities that have yet to develop fully.
Although GoDaddy’s valuation is appealing, analysts are seeking additional evidence of web building, particularly in the area of ecommerce. They express the need for more proof before they can adopt a more positive outlook on their GoDaddy rating, partly to the anticipated persistent impact of generative AI technology.
GoDaddy has recently introduced a rather “half-baked” guide on generative AI prompts for small businesses.
In an article presented by Seeking Alpha, RBC Capital Markets highlighted that the domain market has reached a level of saturation compared to web design. GoDaddy has appropriately adjusted its focus towards developing products in the areas of static web design, Ecommerce, and payments.
The firm’s research of web design agencies and their performance, indicates that GoDaddy is trailing behind several other market competitors, including Wix.com, Squarespace, Weebly, Webflow, and WordPress.
View the full article on Seeking Alpha.
Note: This is not investment advice. We hold no positions in GoDaddy stock at the time this article was written.
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