RBC analyst says Godaddy stock is a ‘cash machine with a dash of AI’

Godaddy Inc (NYSE: GDDY) has already rallied about 30% in less than a month but an RBC Capital Markets analyst is convinced it’s just a trailer of where the stock is eventually headed.

Godaddy stock has another 35% upside

On Wednesday, Brad Erickson upgraded the web hosting company to “outperform” and said its shares could climb to $124 – which suggests another 35% upside on its previous close.

The analyst likes Godaddy stock because he’s particularly impressed of the pace at which the New York-listed firm is generating free cash flow.

The bullish note arrives only weeks after Godaddy reported market-beating results for its third financial quarter.

Godaddy stock could benefit from AI tailwinds

Erickson sees the Tempe-headquartered firm as “structurally differentiated” with a super attractive customer acquisition model.

The RBC analyst is constructive on Godaddy stock because it’s well-positioned in generative artificial intelligence that is expected to be the focus of its investor dinner scheduled for November 28^th.

Godaddy will likely offer more visibility into its long-term earnings at its analyst day in the middle of Q1 as well, he added. Executives currently see revenue falling between $4.25 billion and $4.27 billion in fiscal 2023.

Also today, analysts at Biard also said Godaddy Inc still had a “meaningful runway” as they bumped up their price objective on the tech stock.