UBS raises GoDaddy stock price target to $112 on Airo growth

UBS has increased its price target for GoDaddy Inc (NYSE: GDDY) to $112 from $100, while keeping a neutral rating on the stock. The company's valuation appears attractive given its price-to-earnings ratio of 15.6 and price-to-earnings growth ratio of 0.73. InvestingPro analysis suggests the stock is undervalued, placing it among the most undervalued stocks.

GoDaddy reported a 6.0% year-over-year revenue growth in the third quarter, surpassing its high-end guidance. Applications and Commerce revenue grew by approximately 9%, while Core Platform revenue increased by around 4%, exceeding expectations. Net EBITDA margin expanded to 33.5%, surpassing the company's 33% forecast. Growth in total bookings was around 6%, with Applications and Commerce bookings improving to roughly 8% from 7% in the second quarter.

Airo, a key driver, more than doubled its annualized bookings to over $100 million, with two-thirds coming from subscriptions and one-third from credit packs. GoDaddy's financial health is rated as "Great" on InvestingPro, with further details available in the Pro Research Report. GoDaddy's third-quarter 2026 earnings exceeded Wall Street's expectations, with adjusted earnings of $2.08 per share compared to the forecasted $1.89 per share.

Revenue also beat estimates, reaching $1.34 billion versus the anticipated $1.32 billion. The company's strong performance was driven by increased bookings, revenue, and margins, largely due to the rapid adoption of its Airo product. Despite a slight decline in the stock following the earnings announcement, the results demonstrate solid financial performance.