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On Wednesday, B.Riley reiterated its Buy rating on Wix.com Ltd. (NASDAQ:WIX) with a steady price target of $240.00. The firm’s analyst highlighted Wix’s first-quarter results, which surpassed expectations, driven by robust performance in the Partner channel and an uptick in the self-creator segment. Management’s shareholder letter shed light on strong demand at the top of the sales funnel during the first quarter, with healthy conversion rates fostering significant growth in new user cohorts. This momentum is reportedly carrying on into April and May. According to InvestingPro data, Wix has demonstrated solid financial performance with revenue growing at ~13% and maintaining a healthy gross profit margin of 68%. The company’s current market capitalization stands at $8.9 billion, with analysts setting price targets ranging from $166 to $300.
The company’s management has reaffirmed its outlook for 2025, suggesting a degree of caution in the Business Solutions forecast due to potential macroeconomic uncertainties. B.Riley’s current valuation model and price target are under review, and the firm plans to provide a detailed analysis following Wix’s conference call, scheduled for 8:30 a.m. ET. InvestingPro analysis indicates that Wix’s net income is expected to grow this year, with EPS forecasts for 2025 reaching $8.16. The company has been actively managing its capital structure, with management aggressively buying back shares - one of the 14 exclusive ProTips available for this stock.
Wix.com’s recent performance appears to be a testament to the company’s strategic initiatives and its ability to attract and retain users through its Partner channel and DIY platform. The analyst’s commentary indicates that the company’s growth is not only strong but also sustainable into the near future, despite potential macroeconomic headwinds that could impact the broader business solutions sector. With a strong return over the last month and a five-year revenue CAGR of 18%, Wix demonstrates robust growth metrics. For deeper insights into Wix’s valuation and growth potential, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, which covers over 1,400 US stocks with detailed analysis and actionable intelligence.
Investors and stakeholders can anticipate further insights from B.Riley after the firm’s analysts have had the opportunity to digest the details from the company’s earnings call. The follow-up commentary will likely provide a more granular view of Wix.com’s performance and the analyst’s expectations for the company’s financial trajectory. The company currently maintains an analyst consensus recommendation of 1.76, indicating a strong buy signal, while operating with a moderate level of debt and sufficient cash flows to cover interest payments.
In other recent news, Wix.com reported its first-quarter 2025 financial results, with revenue reaching $473.7 million, slightly surpassing the IBES estimate of $472.1 million. The company also achieved a net income of $33.766 million and a free cash flow of $142.4 million, exceeding Wall Street’s expectations. Looking ahead, Wix.com projects its second-quarter revenue to increase to between $485 million and $489 million, representing an 11-12% year-over-year growth.
Benchmark revised its price target for Wix.com to $245, maintaining a Buy rating, while Jefferies kept its Buy rating with a $230 price target, citing robust fundamentals. BofA Securities also adjusted its price target to $230, maintaining a Buy rating, despite mixed financial performance in bookings and revenue. Meanwhile, JPMorgan maintained a Neutral rating with a $189 price target, noting the company’s cautious full-year earnings guidance amid ongoing macroeconomic uncertainties.
Wix.com continues to experience growth in its partner network, with a 24% year-over-year increase, and remains optimistic about accelerating bookings and revenue growth in the latter half of the year.
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