Trump announces trade deal with EU following months of negotiations
On Thursday, JMP analysts increased the price target for Wix.com stock (NASDAQ:WIX) to $250 from the previous $240, while reiterating a Market Outperform rating. The firm believes that Wix’s conservative 2025 guidance has the potential for upside due to new product initiatives. The stock has shown remarkable momentum, delivering a 73% return over the past year. According to InvestingPro analysis, Wix currently trades at a P/E ratio of 128, reflecting high growth expectations.
The analysts highlighted Wix’s product catalysts, particularly in the areas of Studio and AI. They emphasized the AI Website Builder and AI Agents as key innovations that could drive the company’s performance beyond current estimates. The commentary suggests that the 2025 guidance does not fully account for the potential benefits from these new products, indicating a cautious approach by Wix. With revenue growing at 12.7% and an impressive gross profit margin of 68%, InvestingPro data shows Wix maintains strong fundamentals to support its innovation initiatives.
In addition to product development, the firm expects Wix to continue exhibiting operational discipline. This includes prudent headcount growth and rational marketing investments. JMP analysts pointed out that as Wix builds awareness among partners, the company is likely to maintain a disciplined approach to spending.
The analysts also mentioned that achieving double-digit self-creator growth is likely a target for 2026. This long-term goal underscores the company’s steady and strategic expansion plans. The raised price target reflects the analysts’ confidence in Wix’s future performance, driven by both innovation and operational efficiency.
In other recent news, Wix.com reported its fourth-quarter 2024 earnings, surpassing analyst expectations with an earnings per share (EPS) of $1.93, compared to the forecasted $1.59. The company achieved revenue of $460.5 million, which was slightly below the forecast of $461.87 million. Despite the earnings beat, the stock experienced a minor decline. Morgan Stanley (NYSE:MS) responded by raising Wix.com’s price target from $276.00 to $279.00, maintaining an Overweight rating, citing robust performance and a positive outlook for 2025. Raymond (NSE:RYMD) James also reiterated a Strong Buy rating with a $300.00 price target, emphasizing the company’s quality bookings and potential growth from AI initiatives. Oppenheimer maintained an Outperform rating with a $250.00 price target, noting that bookings, revenue, and free cash flow were in line with expectations. The firm highlighted the success of Wix Studio, AI, and partnerships as key factors in the company’s performance. These developments indicate a continued focus on product innovation and growth strategies at Wix.com.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.