Citizens JMP lowers Wix.com stock price target to $160 on Base44 investments

Investing.com - Citizens JMP has lowered its price target on Wix.com (NASDAQ:WIX) to $160.00 from $250.00 while maintaining a Market Outperform rating. According to InvestingPro data, the stock currently trades at $122.85, with analyst targets ranging from $160 to $255.

The firm cited Wix’s investments in Base44 as the primary reason for the reduced price target, which prompted the analyst to lower operating income expectations. Despite these concerns, Wix maintains strong fundamentals with a 68% gross profit margin and 13% revenue growth in the last twelve months.

The new $160 price target is based on 15x 2026E free cash flow of $635 million (28% margin), down from the previous valuation of 23x 2026E free cash flow of $657 million.

This revised target implies approximately 4x 2026E enterprise value to revenue multiple, representing a slight premium to comparable companies.

Citizens JMP justified this premium valuation based on Wix’s approximately 30% free cash flow margins and the potential for integrating Base44, with shares last closing at $122.85.

In other recent news, Wix.com has seen a series of analyst actions and updates following its second-quarter results. The company reported revenue and free cash flow that exceeded prior estimates by 1% and 4%, respectively, with bookings growth of 11% year-over-year. Despite this positive performance, Cantor Fitzgerald lowered its price target to $160, citing growth concerns, while maintaining an Overweight rating. Conversely, Scotiabank (TSX:BNS) raised its price target to $255, highlighting Wix’s shift toward monetization strategies and AI-led upsell initiatives. UBS also adjusted its price target downward to $200 due to margin concerns, despite Wix raising its full-year booking guidance by $15 million. Benchmark reaffirmed its Buy rating and $230 price target, noting strong business fundamentals and an increase in gross payment volume. Raymond (NSE:RYMD) James maintained a Strong Buy rating with a $250 price target, anticipating momentum in new products and potential positive developments in the company’s bookings outlook. These updates reflect a diverse range of analyst perspectives on Wix.com’s recent performance and strategic direction.

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