Street Calls of the Week
Investing.com - CFRA raised its price target on Wix.com (NASDAQ:WIX) to $200.00 from $159.00 on Friday, while maintaining a Buy rating on the web development platform company. The stock, currently trading at $169.40, has shown strong momentum with an impressive 10.7% return over the past week. According to InvestingPro analysis, the company maintains a "GREAT" overall financial health score.
The new target implies a 2026 price-to-earnings ratio of 22.9x, significantly below the company’s 5-year average of 76.2x, based on CFRA’s projected two-year revenue compound annual growth rate of 13% through 2026. This growth projection aligns with Wix’s historical performance, as InvestingPro data shows a robust 18% revenue CAGR over the past five years.
CFRA forecasts Wix.com’s revenue to grow 14% to $2.0 billion in 2025 and 13% to $2.3 billion in 2026, driven by expected healthy conversions of users to premium subscriptions, supported by product innovations and efficient marketing strategies.
The research firm also anticipates higher average revenue per premium subscription due to increased product pricing, a more favorable mix of subscription packages, expanded product offerings, and growing adoption of Business Solutions features.
CFRA expects modest non-GAAP net margin expansion in 2025 and 2026 from better operating leverage and cost controls, though this will be partially offset by investments in AI, product innovations, and headcount growth to integrate Base44, while maintaining its non-GAAP earnings per share estimates of $7.43 for 2025 and $8.75 for 2026.
In other recent news, Wix.com has announced the pricing of $1 billion in convertible senior notes due 2030, an increase from its previously announced $750 million offering. The zero-coupon notes are set to mature on September 15, 2030, and will be available to qualified institutional buyers. This financial maneuver is a significant development for the company. Additionally, CFRA has upgraded Wix.com from Hold to Buy, citing strong projected revenue growth. The firm expects a two-year revenue compound annual growth rate of 13% through 2026, with revenue forecasted to reach $2.0 billion in 2025 and $2.3 billion in 2026. Benchmark has reiterated a Buy rating on Wix.com, noting the company’s expansion into vibe coding technology. This expansion includes the launch of Dazl, a platform developed by Wix co-founder Nadav Abrahami, with financial backing from Wix itself. Citizens JMP also maintained its Market Outperform rating on Wix.com, reflecting continued confidence in the company’s growth potential.
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