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