Benchmark on Monday lowered its price target for GoDaddy Inc. to $210 from $240 while keeping a Buy rating, according to a note released by the firm. The brokerage flagged a meaningful valuation reset in the shares even as it emphasized confidence in GoDaddy's competitive positioning and AI-related economics.
Benchmark pointed to a disconnect between current market pricing and GoDaddy's recent operating performance. The shares are trading at an 8.7x forward EV/adjusted EBITDA multiple, the firm said, a roughly 36% discount to the one-year average forward multiple of 13.6x. Benchmark also highlighted a robust projected cash return profile, noting a 2026 free cash flow yield of 14.4% versus a one-year average of 9.2%.
At the time of the note, the stock was changing hands at $87.40, near its 52-week low of $87.13. A valuation analysis available through InvestingPro indicated a Fair Value estimate of $130.57 and suggested the shares are undervalued. That analysis and related commentary also pointed to a strong implied free cash flow yield, supported by GoDaddy's generation of $1.54 billion in levered free cash flow over the last twelve months. The note referenced the availability of 12 additional ProTips for investors seeking deeper context from that service.
Benchmark argued the current market reset appears to underappreciate two specific drivers. First, the firm cited GoDaddy's differentiation tied to its first-party data. Second, Benchmark said the market is not fully incorporating the timeline for development and commercialization of Airo.ai agents. Management has emphasized opportunities around the Agent Name Service - or ANS - which company leaders view as a potential industry standard for agentic communications and a step toward positioning GoDaddy as an infrastructure provider.
In a demonstration of early enterprise interest, GoDaddy integrated ANS with Salesforce MuleSoft Agent Fabric on February 19. Benchmark noted that ANS is embedded into MuleSoft's enterprise discovery and governance workflow, which the analyst framed as evidence of early demand for governance capabilities in agent deployments.
Investors are due to receive GoDaddy's fourth-quarter results after the market close on Tuesday, February 24. Benchmark's revenue and adjusted EBITDA estimates for the fourth quarter and the first quarter are in line with consensus, the firm said.
Other broker commentary cited in the note and in recent coverage points to growing engagement with GoDaddy's Airo AI tool. Raymond James highlighted an increase in Airo utilization, reporting that agencies have praised the tool's AI output quality and the reliability of its releases. GoDaddy has also launched an Agent Name Service Marketplace, which includes AI agents such as Brand Advisor and Social Media Post Generator and is intended to bolster trust and security in its AI ecosystem.
Analyst positions varied but largely reflected cautious optimism about GoDaddy's AI initiatives. Benchmark maintained its Buy rating, citing conviction in the company's competitive stance and the economics around its AI efforts. Evercore ISI reiterated an In Line rating and pointed to demonstrated Airo use cases, including a custom-built website for microbusinesses. Oppenheimer kept a Perform rating, expressing a constructive view of GoDaddy's strategy to deepen customer engagement through AI offerings.
Taken together, the analyst commentary and product developments underscore management's continued emphasis on leveraging AI tools and platform capabilities to expand the company's product portfolio and market positioning, even as market multiples have reset materially lower.