Piper Jaffray's Munster Starts GoDaddy Inc (GDDY) at Overweight

Piper Jaffray initiates coverage on GoDaddy Inc (NYSE: GDDY) with a Overweight rating and a price target of $36.00, saying the company's long-term growth warrants a valuation premium

Analyst Gene Munster commented, "We are initiating on shares of GDDY with an Overweight rating and $36 price target, which offers 44% potential upside from Friday's closing price. We believe that GoDaddy is the best positioned domain name registrar and small and mid-sized business (SMB) technology provider to capitalize on the secular shift of advertising dollars to the internet, along with new emerging growth themes around SMBs increasingly adopting SaaS and cloud-based technology. We view an investment in GDDY as having a favorable risk-reward profile given the company's strong cash flow, relatively solid execution, and dominance in the domain market. Our valuation methodology employs an 18x 2016E EV/EBITDA, which is at a premium to GoDaddy's peer group to reflect value in the company's Up-C tax benefits, longer-term EBITDA growth profile, large opportunities in new geographic and demographic segments, and expansion of business application products. Initiating Overweight with a $36 price target."

For an analyst ratings summary and ratings history on GoDaddy Inc click here. For more ratings news on GoDaddy Inc click here.

Shares of GoDaddy Inc closed at $24.88 yesterday.

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