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Website building and hosting companies were on the mind of J.P. Morgan analyst Alexei Gogolev, as he weighed in on likes of GoDaddy (NYSE:GDDY), Wix (NASDAQ:WIX) and SquareSpace (NYSE:SQSP) on Friday.
GoDaddy (GDDY) shares rose almost 3% as Gogolev started coverage of the company with an overweight rating and $89-a-share price target. Wix (WIX) was up by 2.6% after Gogolev set a neutral rating and $84-a-share price target on the company’s stock. SquareSpace (SQSP) didn’t get on the winning wagon, as its shares gave up almost 6% after Gogolev assumed coverage of the company and cut his rating on the stock to neutral from overweight, with price target of $25 a share.
Gogolev said all three companies are “attractive” in the long term, but for the near future, “We are likely to remain cautious on the Internet infrastructure space give high sensitivity to the straining of the consumer’s wallet.”
Gogolev said opportunities remain because only about one-quarter of the more than 200M active websites around the world are content management sites that have been built with the tools of offered by GoDaddy (GDDY), Wix (WIX) and SquareSpace (SQSP).
“This implies a massive opportunity to target the remaining share of websites by offering users with even little-to-no technical skills ability to create professional websites within minutes,” Gogolev said.
Gogolev’s new views came one day after Wix (WIX) reported third-quarter earnings that topped estimates and gave a better-than-expected full year revenue outlook.
