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On Wednesday, Jefferies analyst Brent Thill increased the price target on Wix.com (NASDAQ:WIX) stock to $265 from $260, while reiterating a Buy rating on the shares. The stock, which has delivered an impressive 79% return over the past year and currently trades at $228, appears overvalued according to InvestingPro analysis. Thill’s assessment followed Wix.com’s fiscal year 2025 revenue guidance, which indicated an expected growth of 14-16% excluding foreign exchange impacts, an acceleration compared to the 13% growth in fiscal year 2024. This projection builds upon the company’s consistent growth trajectory, with revenue increasing by 12.6% in the last twelve months to $1.7 billion.
Wix.com’s forecast for free cash flow (FCF) margin is particularly notable, with the company guiding for 31-32% growth excluding foreign exchange impacts, which is significantly higher than the Street’s expectation of 28.6% and the fiscal year 2024 margin of 27.7%. This positive outlook is slightly offset by a one percentage point headwind due to foreign exchange. For deeper insights into Wix.com’s financial health (rated GOOD by InvestingPro) and access to 16+ additional ProTips, consider exploring InvestingPro’s comprehensive analysis tools.
The bookings guidance for the company, predicting a 13-15% growth in constant currency and 11-13% as reported, aligns with the Street’s projection of 14.2% and surpasses the lower expectations that ranged from 10-12%. Thill highlighted that fiscal year 2025 should see benefits from the continued success of Wix.com’s Studio and AI offerings, while fiscal year 2026 is expected to be bolstered by the launch of new Self-Creator products in the spring and fall.
In his comments, Thill expressed confidence in the company’s trajectory and the strategic initiatives that are anticipated to contribute to its growth. The slight adjustment in the price target reflects these positive expectations and the company’s potential to outperform in the coming years.
In other recent news, Wix.com has been the subject of multiple analyst reports. JPMorgan cut Wix.com’s price target to $189, maintaining a neutral rating. The firm’s analysis highlighted Wix’s early achievement of the Rule of 40 and its aim to become a Rule of 45 company by 2025. Meanwhile, Benchmark maintained a Buy rating and a $250 price target for Wix.com, anticipating strong operational performance in the coming years.
JMP Securities also held a favorable view of Wix.com, maintaining a Market Outperform rating and a $240 price target, underscoring the company’s potential for growth. On the other hand, Wells Fargo (NYSE:WFC) initiated coverage of Wix.com with an Underweight rating and a $208 price target, expressing concern about a potential slowdown in the pace of Creative Subscription bookings.
Lastly, Citi raised Wix.com’s price target to $275 while keeping a Buy rating, citing optimism about the company’s fundamentals and potential top-line growth from product initiatives. These recent developments indicate a diverse range of opinions from different analyst firms regarding Wix.com’s future performance.
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