WIX - Godaddy rises as Baird starts with outperform rating

2023-04-11 14:31:50 ET

• Godaddy ( NYSE: GDDY ) shares rose in late-day trading on Tuesday as investment firm Baird started coverage on the domain registrar and web hosting industry.
• Analyst Vikram Kesavabhotla put an outperform rating on Godaddy ( GDDY ), along with neutral ratings on Squarespace ( SQSP ) and Wix.com ( WIX ), noting that while all three have developed "compelling platforms," Godaddy's stock seems to be better positioned.
• "We are recommending GDDY, as the shares seem relatively better positioned based on estimates, valuation, and free cash flow generation," Kesavabhotla wrote in an investor note.
• Despite the recommendation, Kesavabhotla added that there are concerns about the industry, citing continued macro uncertainty and its potential to negatively impact small and medium-sized businesses.
• Additionally, Kesavabhotla pointed out that 2022 was seen as an "eventful" year filled with cost reductions, price increases and partnership announcements, paving the way for 2023 to be less exciting.
• Wix.com ( WIX ) and Squarespace ( SQSP ) fell nearly 1% each on Tuesday.
• Late last month, Piper Sandler upgraded Wix.com ( WIX ) and downgraded Godaddy ( GDDY ), citng the market moving more towards growth.

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