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Investing.com - UBS lowered its price target on Wix.com (NASDAQ:WIX) to $170 from $200 while maintaining a Buy rating, citing adjusted free cash flow estimates for 2026 and 2027 that were reduced by approximately 11% and 9% respectively. This comes as Wix shares have fallen significantly, now trading at $94.26, nearly 62% below their 52-week high of $247.11.
The firm noted that Wix is currently trading at a more than 10% 2026 estimated adjusted free cash flow yield, with free cash flow growth expected to reaccelerate to high-teens percentages in 2027 and beyond, according to UBS estimates. InvestingPro data confirms this strong cash position, showing Wix generated $550.66 million in levered free cash flow over the last twelve months, representing an 11% yield at current valuation.
UBS believes the current valuation appears to give negative credit to Wix’s Base44 product and its initiative to enter the vibe coding app development market, or prices in severe terminal value risks to Wix’s core business, which the firm considers robust.
The firm highlighted Wix’s history of investing strongly behind key initiatives to adapt to changes or gain first-mover advantage, which has enabled its success in the SaaS content management system market.
UBS identified several potential catalysts for Wix in 2026, including the revamped core editor release in early 2026, the 2026 outlook with underlying marketing budget for Base44, a potential Studio upgrade, a possible pricing increase, and potentially an investor day.
In other recent news, Wix.com reported strong third-quarter results, exceeding expectations for both bookings and revenue. However, increased spending on marketing and AI computing, as well as investments in the Base44 product, have impacted the company’s profit margins. Despite these financial pressures, Wix.com raised its full-year guidance, reflecting confidence in its future performance. Several financial firms have adjusted their price targets for Wix.com, citing various challenges and opportunities. Benchmark reduced its price target to $185, highlighting increased marketing and AI costs. RBC Capital lowered its target to $190, pointing to margin pressures from the company’s vibe coding initiatives. Cantor Fitzgerald and Needham also revised their targets to $135 and $140, respectively, due to costs associated with Base44 investments. Scotiabank decreased its price target to $175, noting the positive performance of Wix’s core platform and Base44 product.
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