Needham maintains Buy rating on Wix.com stock, citing positive developer checks

Investing.com - Needham has reiterated a Buy rating on Wix.com (NASDAQ:WIX) stock with a price target of $200.00, following "modestly positive developer checks." According to InvestingPro data, analyst consensus remains highly bullish with targets ranging from $160 to $255, while the company’s Fair Value analysis suggests the stock is currently undervalued.

The firm reported continued supportive commentary on Wix Studio, noting slightly better adoption compared to checks conducted shortly after the product’s launch.

One of the strongest data points from Needham’s research was the improvement in the number of leads received through the Wix marketplace compared to six months ago, though the firm noted this positive indicator is somewhat offset by a decline in the number of developers in the marketplace.

Data from Similar Web suggests the steep ramp of Base44 ARR (Annual Recurring Revenue) stabilized in September, according to the research note.

Needham indicated that the significant increase in ARR since the acquisition suggests consensus revenue estimates for next year "are achievable, if not conservative," pointing to healthy Partner revenue and potential benefits from an upcoming self-creator product that has yet to launch.

In other recent news, Wix.com has been the focus of multiple analyst updates and company developments. Benchmark has reaffirmed its Buy rating with a $230 price target, despite competitive pressures from companies like Salesforce and Squarespace. Citizens also maintained its Market Outperform rating, highlighting the beta launch of Wix Vibe, which aims to streamline website creation. Piper Sandler raised its price target to $210, noting significant momentum from the Base44 acquisition, which has exceeded initial revenue guidance.

Citizens JMP also increased its price target to $210, citing strong growth in Base44 website visits and subsequent revenue estimates for the coming years. RBC Capital reiterated an Outperform rating, emphasizing the potential of Wix’s vibe coding as a growth driver. These updates reflect a general optimism among analysts regarding Wix.com’s strategic initiatives and growth prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.