The broker raises shares to equal value from undervalued
As GoTo Group’s stock price starts to rise, Morgan Stanley is joining a growing chorus of brokerage firms that are boosting the company’s ratings, indicating the belief that the risks are fair at the current prices.
According to Morgan Stanley, “GoDaddy now deserves a profit for quicker 2021–2024 revenue growth of 68% versus peers of 42%.” They also upgraded the company’s rating to “equal weight.”
Profitability and market woes continue to weigh on stocks.
According to Morgan Stanley analysts, given the deficit premium for Indonesian internet names, GoTo trades at a 4.3x enterprise value-to-revenue ratio in 2023 as opposed to a 3.5x peer ratio.
However, intense but intensifying competition and no clear market leader will mean that GoTo will spend heavily until 2025.
The brokerage company cut its target price by 41% to Rs 110.