EU and US could reach trade deal this weekend - Reuters
On Monday, Jefferies restated its Buy rating on Wix (NASDAQ:WIX).com shares with a steady price target of $230.00. The firm’s analysts highlighted the company’s robust fundamentals, which appear to be resilient in the face of subdued sentiment among small and medium-sized businesses (SMBs) and persistent macroeconomic headwinds. With revenue reaching $1.76 billion and showing solid growth of ~13% year-over-year, the company’s performance supports this positive outlook. According to InvestingPro data, Wix.com is currently trading slightly below its Fair Value, suggesting potential upside opportunity. The firm anticipates that Wix.com will maintain its momentum throughout the fiscal year 2025, bolstered by the growing popularity of WIX Studio, Partners, and AI products.
Analysts at Jefferies have observed a rising interest in Wix.com’s platform, reinforcing their confidence in the company’s trajectory towards achieving the Rule of 40+—a benchmark for SaaS companies indicating strong performance—sooner than anticipated. They noted that the current enterprise value to sales ratio (EV/S) for the calendar year 2026 stands at 4.7 times, which is considered low compared to GoDaddy (NYSE:GDDY)’s 5.8 times, especially given Wix.com’s rapid pace of innovation. InvestingPro analysis reveals a strong gross profit margin of ~68% and healthy cash flows that sufficiently cover interest payments, demonstrating the company’s operational efficiency.
The report suggests that expectations for the first quarter are reasonable, and the company should experience consistent growth. The analysts’ checks indicate that there is an increasing interest in Wix.com’s offerings, which supports their ongoing optimistic outlook for the company. This optimism is reflected in InvestingPro’s comprehensive analysis, which includes 14 additional ProTips and detailed metrics available to subscribers, along with an in-depth Pro Research Report that provides actionable intelligence for smarter investment decisions.
Wix.com’s platform, known for enabling users to create websites and manage their online presence, has been expanding its capabilities. The company’s focus on areas such as WIX Studio and partnerships, along with its investments in artificial intelligence, are expected to drive future growth.
The analysts’ reiterated price target of $230.00 reflects their belief in Wix.com’s potential for sustained growth and value creation, despite the current market challenges. The endorsement from Jefferies serves as a positive signal for the company’s stock as it navigates through the evolving digital landscape.
In other recent news, Wix.com Ltd. has introduced an AI-powered adaptive content application aimed at personalizing website experiences for users. This new tool allows website owners to tailor content based on visitor characteristics, enhancing engagement and potentially boosting monetization. Additionally, Wix unveiled Astro, an AI assistant designed to streamline site management and business operations, providing users with a comprehensive suite of tools for optimizing their online presence. The company also launched an automation builder to simplify complex workflow processes, offering businesses the ability to create customized automations to improve efficiency and customer retention.
In the realm of financial analysis, CFRA downgraded Wix.com stock from Buy to Hold, reducing the price target to $159 due to a slower growth trajectory. Despite an 18% year-over-year increase in total bookings, CFRA anticipates a stabilization in revenue growth at 13% for 2025 and 2026. Conversely, Wells Fargo (NYSE:WFC) upgraded Wix.com’s stock to Equal Weight, setting a price target of $176, citing potential price increases in fiscal year 2026 as a positive factor. This reflects a more optimistic view on Wix’s ability to manage pricing and reduce risks to consensus estimates. These developments highlight Wix’s ongoing efforts to innovate and adapt in a competitive market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.