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On Wednesday, BofA Securities adjusted its outlook on Wix.com shares (NASDAQ:WIX), reducing the price target to $230 from the previous $270. Despite this change, the firm maintained a Buy rating on the stock. According to InvestingPro data, Wix currently trades at $181.74, with analysts setting targets between $166 and $300. The adjustment followed Wix’s recent financial performance, which revealed mixed results in its bookings and revenue against market expectations.
Wix reported bookings of $510.9 million, revenue of $473.7 million, and free cash flow (FCF) of $142.4 million. These figures slightly surpassed Wall Street’s forecasts, which anticipated bookings of $505.4 million, revenue of $471.9 million, and FCF of $137.4 million. InvestingPro analysis shows the company’s strong financial health, with a robust revenue growth of 12.74% and an impressive gross profit margin of 67.93%. The company’s Creative Subscriptions bookings notably exceeded predictions, coming in at $369 million compared to the Street’s expectation of $364 million.
However, Wix’s Business Solutions Bookings, which represent a segment with higher growth but lower margins, did not meet analysts’ projections, achieving $141 million against the anticipated $142 million. Despite this shortfall, the company experienced substantial growth in its partner network, with a 24% year-over-year increase. This growth was largely attributed to the success of Wix Studio and another quarter of accelerating growth from Self Creators.
The first quarter FCF of $142.4 million was $5 million above the Street’s expectations, a result attributed to the company’s operating efficiency leverage. BofA Securities’ analyst highlighted these financial outcomes in their commentary, emphasizing the company’s performance in key areas while acknowledging the slight miss in the Business Solutions segment.
The revised price target from BofA Securities reflects a recalibration of expectations in light of Wix’s current financial metrics and market performance. InvestingPro subscribers have access to 14 additional exclusive tips about Wix, including detailed insights about its valuation metrics and growth prospects. Get the complete picture with InvestingPro’s comprehensive research report, available for Wix and 1,400+ other US stocks.
In other recent news, Wix.com reported its first-quarter 2025 results, revealing an operating income of $37.405 million and a net income of $33.766 million. The company achieved a revenue of $473.7 million, slightly surpassing the IBES estimate of $472.1 million. Looking forward, Wix.com projects its second-quarter revenue to rise between $485-$489 million, marking an 11-12% year-over-year increase. Benchmark adjusted its price target for Wix.com to $245 while maintaining a Buy rating, citing macroeconomic factors influencing bookings and revenue projections. Jefferies also upheld a Buy rating with a $230 price target, emphasizing the company’s robust fundamentals and potential to meet the Rule of 40+ benchmark for SaaS companies. JPMorgan reiterated its Neutral rating with a $189 price target, noting Wix.com’s conservative full-year earnings guidance amidst macroeconomic uncertainties. Additionally, Wix.com launched an AI-driven adaptive content application to enhance user engagement by personalizing online content in real time. This new tool integrates with existing Wix offerings, aiming to optimize digital presence with minimal manual effort.
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