GoDaddy's (GDDY) Q4 performance extended to the bottom line, as the company is poised to return to client growth this year, Morgan Stanley said in a Friday note.
The company will see bookings and revenue growth as the year-end was "solid" and GoDaddy is focused on higher-value clients who "retain and monetize better," the note added.
Morgan Stanley said that roughly all of the firm's clients are now on the integrated platform, which has a more than 85% retention rate.
Additionally, GoDaddy has mostly surpassed the headwinds stage due to asset divestitures and migrations in the last two years, the note said.
Morgan Stanley raised GoDaddy's price target to $228 from $227 and maintained an equalweight rating on the stock.
Shares of the company were down 12% in recent Friday trading.
Price: 187.61, Change: -24.93, Percent Change: -11.73
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.