Nucor earnings beat by $0.08, revenue fell short of estimates
On Thursday, Needham analysts increased the price target for Wix.com (NASDAQ:WIX) stock from $235.00 to $250.00, while sustaining a Buy rating. With the stock currently trading at $217, representing a 73% gain over the past year, and a market capitalization of $12.15 billion, the adjustment reflects a forecast of a slight multiple contraction over the next year. According to InvestingPro analysis, the stock is currently trading above its Fair Value, though analysts see further upside potential.
Wix.com, known for its web development services, has been acknowledged by Needham as a top product-driven growth story within their coverage. The company has demonstrated solid performance with revenue growth of 12.74% over the last twelve months, reaching $1.76 billion. The company’s growth expectations for 2025 are influenced by foreign exchange rates and the comparison to last year’s price increase. InvestingPro data reveals 15 additional investment insights, including that management has been aggressively buying back shares.
The analysts highlighted that Wix Studio is attracting a significant number of new developers and agencies to its platform. This trend is anticipated to have enduring benefits for the company. Additionally, Wix’s Self Creator segment is set to introduce new products throughout the year, which may potentially boost revenue growth back into double digits. Such an outcome could surpass Needham’s current revenue projections for Wix.com. The company maintains a strong financial position, with InvestingPro assigning it a "GOOD" overall Financial Health Score.
The statement from the analyst at Needham underscored the strength of Wix.com’s market position and the potential for its upcoming product launches to enhance its revenue streams. The new price target suggests that Needham sees continued value in Wix.com shares despite the anticipated market contractions.
Investors and market watchers will be keeping an eye on Wix.com’s performance, particularly in light of the new products set to launch under the Self Creator umbrella. These developments could be pivotal in determining whether the company achieves the revenue acceleration that Needham anticipates.
In other recent news, Wix.com has been the focus of several analyst reports following its robust fourth-quarter performance. Raymond (NSE:RYMD) James reiterated a Strong Buy rating with a $300 price target, highlighting the company’s impressive bookings driven by Wix Studio and potential benefits from its AI Website Builder. The firm expects Wix.com’s Annual Recurring Revenue from Studio to increase significantly by the end of 2025. Citi also maintained a Buy rating while raising its price target to $280, citing strong bookings and free cash flow that surpassed expectations. The analysts foresee continued top-line growth and margin expansion throughout 2025, with optimism for further growth in 2026 due to new product contributions. JMP increased its price target to $250, emphasizing the potential upside from Wix.com’s new product initiatives, particularly in AI. The firm noted the company’s operational discipline and strategic expansion plans. Morgan Stanley (NYSE:MS) lifted its price target to $279, maintaining an Overweight rating, and praised Wix.com’s product innovation and cost management as key growth drivers. The firm believes the projected rise in free cash flow for 2025 is not fully recognized by the market, suggesting a favorable investment outlook for Wix.com.
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