Raymond James maintains Strong Buy on Wix.com, $300 target

On Thursday, Raymond (NSE:RYMD) James reiterated a Strong Buy rating on Wix.com shares (NASDAQ:WIX), maintaining a $300.00 price target, representing about 38% upside from the current price of $217. The firm’s analysts highlighted the company’s impressive bookings performance, driven by the momentum of its Studio product. They also noted potential upcoming benefits from improved AI Website Builder conversion rates and the introduction of new products, including AI Site Chat and consumption pricing options. According to InvestingPro data, Wix maintains a "GOOD" overall financial health score, with particularly strong growth metrics.

Wix.com’s recent financial outlook indicated a foreign exchange neutral (FXN) bookings growth projection of 13-15%, which was in line with expectations, albeit with a heavier weighting towards the second half of the year. The company also provided a revenue outlook for the first quarter of 2025, showing a 12.2% increase, building on its impressive last twelve months revenue growth of 12.74% to $1.76 billion. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading above its intrinsic value, though 13 additional ProTips are available for subscribers.

Analysts at Raymond James expressed confidence in Wix.com’s ability to accelerate its FXN bookings growth from approximately 12% in the first quarter of 2025 to around 15% by the fourth quarter. They pointed out two key growth drivers: the anticipated ramp-up of Studio’s Annual Recurring Revenue (ARR) from roughly $70 million in the fourth quarter of 2024 to $175 million in the same period of 2025, and the AI Website Builder’s expected contribution to premium subscription growth.

The firm encouraged investors to consider buying Wix.com shares on any pullbacks, citing the clear factors that are likely to drive the company’s bookings growth throughout the year. The analysts’ outlook suggests optimism for Wix.com’s continued expansion and innovation in its product offerings, aiming to extend beyond core website services to a broader internet presence.

In other recent news, Wix.com reported strong fourth-quarter results, with bookings and free cash flow exceeding expectations. The company provided guidance for fiscal year 2025, suggesting sustained growth and significant margin expansion. Citi analysts responded by raising their price target for Wix.com to $280, maintaining a Buy rating, and expressing confidence in the company’s long-term prospects. Similarly, Morgan Stanley (NYSE:MS) increased its price target to $279, citing robust performance and an optimistic outlook for free cash flow growth. Raymond James maintained a Strong Buy rating with a $300 target, highlighting the potential benefits from Wix Studio and AI Website Builder innovations.

JMP analysts also raised their price target to $250, emphasizing the potential upside from new product initiatives, particularly in AI. Oppenheimer reaffirmed its Outperform rating and $250 target, noting that Wix.com’s bookings, revenue, and free cash flow aligned with consensus estimates. Despite a decline in premium subscribers, the company experienced strong growth in partnerships and transactional strength. Analysts from various firms expressed confidence in Wix.com’s ability to sustain growth through innovation and cost management.

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