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Barclays (LON:BARC) maintained its Overweight rating and $240.00 price target on Wix.com (NASDAQ:WIX) stock on Wednesday, representing a significant upside from the current price of $154.82. According to InvestingPro data, the company maintains a GOOD financial health score, with analyst targets ranging from $168 to $250. The research firm’s assessment comes amid recent acquisition activity by the web development platform company.
The rating affirmation follows Wix.com’s recent transaction, which occurred just weeks after the company announced its acquisition of "Hour One," a company with generative AI media creation capabilities. Terms for the Hour One deal were not disclosed. The company’s strong financial position, with revenue growing at ~13% and a healthy gross profit margin of 68%, supports its acquisition strategy.
Barclays noted potential shifts in Wix’s business strategy, stating "We do wonder if Wix is beginning to prioritize M&A as a larger part of its capital allocation strategy." The firm’s analysis points to an emerging pattern of acquisitions by the web development platform provider.
Despite the recent deals, Barclays does not expect Wix to pursue major transformative acquisitions. The firm indicated that while large-scale M&A appears unlikely, additional smaller acquisitions remain possible.
The research firm specifically noted it "would not be surprised to see more of these tuck-in deals to bolster talent/product capabilities," suggesting Wix may continue targeted acquisitions to enhance its existing service offerings and technical expertise.
In other recent news, Wix.com has been the focus of several analyst updates and financial evaluations. Cantor Fitzgerald has maintained its Overweight rating on Wix.com, with a price target of $200, despite investor concerns about the company’s fiscal year 2025 bookings guidance. The firm highlighted Wix.com’s first-quarter results, which showed revenue in line with expectations and free cash flow exceeding predictions by 4%. Baird upgraded Wix.com from Neutral to Outperform, citing improved product offerings and reasonable expectations following the first-quarter earnings report, although it lowered the price target to $190. Benchmark also adjusted its price target to $230 from $245, maintaining a Buy rating due to Wix’s first-quarter performance and reaffirmed free cash flow margin guidance. Meanwhile, Piper Sandler cut its price target to $225 but retained an Overweight rating, noting a slowdown in the Partners segment’s growth. Despite these adjustments, analysts have expressed confidence in Wix.com’s potential for sustained growth and innovation, particularly with new AI-powered products being introduced.
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