© Reuters. GoDaddy (GDDY) shares are ‘under-owned’ – RBC Capital

RBC Capital upgraded shares of GoDaddy (NYSE:) to Outperform from Sector Carry out in a notice Wednesday, elevating the worth goal to $124 per share, up from $90.

Analysts advised traders that the corporate is “structurally differentiated” and under-owned.

“GDDY’s an under-owned, durably rising money machine with a splash of AI,” wrote the analysts. “We like its structurally hedged buyer acquisition mannequin, have rising confidence in margin enlargement popping out of our convention and lastly, like administration’s openness to more and more managing top-line expectations.”

The analysts additionally famous that the corporate’s generative AI-focused dinner subsequent week is well timed, whereas the mid-Q1 analyst day ought to enhance visibility into the corporate’s robust long-term earnings and free money stream era.

“The inventory might be seen as buying and selling at mid-single digit a number of on very reachable longer-term assumptions,” added the analysts.