-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We raise our price target to $123 from $110, applying a P/E of 15x our 2027 EPS estimate, below GDDY's three- and five-year historical averages of 24x-25x, reflecting caution around decelerating bookings and segment structural pressures. We increase our 2026 EPS estimate to $7.12 from $7.08 and 2027's to $8.20 from $8.10, due to better-than-expected margin performance and outlook on AI-driven efficiencies. In our view, GDDY's push into AI products and operations, building on its dominant domain position, is a well-timed strategic move. While we remain cautious around execution risk as AI initiatives scale, we see encouraging early signals with strong Airo adoption ($10M+ annualized bookings within weeks), Airo Care's 50%+ resolution rate improvements, and solid international growth (+7% Y/Y). We believe the quarter's bookings weakness partly reflects management's deliberate quality-over-quantity strategy, with potential for stabilization as AI distribution expands and marketing spend ramps.