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On Thursday, Cantor Fitzgerald reaffirmed its positive stance on Wix.com (NASDAQ:WIX), maintaining an Overweight stock rating and a price target of $200.00. According to InvestingPro data, analysts are generally bullish on the stock, with targets ranging from $166 to $262, suggesting significant upside potential from current levels. The firm’s analyst, Deepak Mathivanan, noted that Wix.com’s first-quarter results displayed revenue in line with expectations and free cash flow that was 4% higher than analysts’ predictions. The company’s total bookings grew by 12% year-over-year, slightly surpassing expectations by one percentage point. This performance contributed to Wix’s impressive last twelve months revenue of $1.76 billion, with a healthy gross profit margin of 68%.
Wix.com’s Partners segment experienced a deceleration, with revenue growth slowing to 24% year-over-year, down by five percentage points. However, the Self Create segment’s growth remained steady at 7% year-over-year. For the second quarter, Wix.com’s revenue guidance of an 11-12% year-over-year increase aligns with the high end of prior market expectations. Notably, despite challenges from foreign exchange headwinds lessening and increased caution due to macroeconomic factors, Wix.com has kept its fiscal year 2025 bookings outlook unchanged, anticipating 11-13% year-over-year growth.
The company has been actively innovating, releasing new AI-powered products in recent months, including Wixel, Astro, Wix functions, and Wix automations. Despite these developments and a modest exceedance of first-quarter expectations, Wix.com shares fell by 16% post-earnings announcement, a contrast to the S&P 500’s 2% decline. Mathivanan suggests that the drop in share price may be an overreaction, given the company’s performance and maintained outlook for fiscal year 2025.
The analyst’s comments come after Wix.com reported first-quarter earnings that showed resilience in its core business segments and a commitment to innovation through the rollout of AI-powered tools. The company’s financial guidance and sustained investment in product development seem to underpin Cantor Fitzgerald’s positive view on the stock’s future performance. InvestingPro analysis suggests the stock is currently undervalued, with 14 additional ProTips available covering growth, profitability, and financial health metrics in the comprehensive Pro Research Report.
In other recent news, Wix.com has reported mixed financial results that have prompted several analyst firms to adjust their outlooks. UBS has lowered its price target for Wix.com to $230, maintaining a Buy rating, after the company’s modest first-quarter earnings beat but a weaker-than-expected second-quarter forecast. Despite the reduction, UBS acknowledges Wix’s conservative fiscal year 2025 guidance and potential foreign exchange benefits. Meanwhile, JMP analysts have upheld their Market Outperform rating with a $250 price target, noting Wix’s first-quarter earnings exceeded expectations, although second-quarter revenue fell slightly short.
Raymond (NSE:RYMD) James also revised its price target to $250 from $300, citing Wix’s cautious financial outlook amidst macroeconomic uncertainties while maintaining a Strong Buy rating. B.Riley has reiterated a Buy rating with a $240 target, highlighting strong first-quarter performance in the Partner channel and self-creator segment. BofA Securities has adjusted its price target to $230 from $270, maintaining a Buy rating, following Wix’s financial performance that slightly exceeded Wall Street forecasts. Despite some shortfalls in the Business Solutions segment, Wix’s partner network saw substantial growth. These developments reflect a recalibration of expectations among analysts based on Wix’s current financial metrics and strategic initiatives.
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