5 ‘Strong Buy’ Tech Stocks At Steep Discounts

“Yet management delivered on its goal while driving revenue outperformance. Having demonstrated the margin potential, management believes it is prudent to reinvest organically and via M&A (i.e. the Handy acquisition) to drive the next phase of growth in a $400 billion total addressable market” the analyst wrote.

He has a buy rating on the stock and a $23 price target. With shares down over 3 percent in the last five days, his price target suggests 27 percent upside potential lies ahead.

GoDaddy (GDDY)

  • Down 16 percent in the last three months
  • Strong Buy analyst consensus
  • Average analyst price target: $88 (38 percent upside potential)

GoDaddy (GDDY – Research Report) is a leading internet tech provider for small, independent ventures.

Following third-quarter earnings, shares plunged 13 percent. This was despite a modest beat and largely consistent fundamental trends.

“GDDY reported healthy, but slowing bookings on mix to shorter-term products, China and FX headwind” explained top Oppenheimer analyst Jason Helfstein (Track Record & Ratings) on November 6. He reiterated his Buy rating with a $79 price target citing strong free cash flow growth.

Crucially, the long-term picture remains as compelling as ever. “We believe that GoDaddy faces a very large, multi-billion-dollar TAM [total addressable market], including well over 300MM SMBs [small-medium businesses] worldwide” writes RBC Capital’s Mark Mahaney.

He reminds investors that this is a business model that has generated consistently robust double-digit revenue growth with significant competitive advantages, and a particularly strong management team.

As a result, Mahaney ramped up his price target from $81 to 83 on November 6 (31 percent upside potential). Overall, seven analysts have reiterated their GDDY Buy ratings in the last week.

Wix (WIX)

  • Down 12 percent in the last three months
  • Strong Buy analyst consensus
  • Average analyst price target: $126 (38 percent upside potential)
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Disclaimer: TipRanks is an independent cloud based service that measures and ranks digitally published financial advice. TipRanks' natural language processing (NLP) algorithms aggregate and ...

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