Wix stock holds $240 target, buoyed by growth catalysts

Published 18/02/2025, 11:00
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On Tuesday, Wix.com Ltd. (NASDAQ:WIX) maintained its Market Outperform rating and $240.00 price target from JMP Securities. With a current market capitalization of $12.5 billion and a stock price of $223.70, the company has delivered impressive returns of 76% over the past year. According to InvestingPro analysis, analyst targets for the stock range from $166 to $300. Analysts at the firm highlighted the company's potential for growth, driven by the increasing adoption of Wix Studio by developers and the impact of its AI Website Builder on Self Creator expansion. The favorable competitive landscape was also noted, with challenges faced by WordPress and the transition of Squarespace (NYSE:SQSP) to private equity ownership seen as advantageous for Wix. InvestingPro data shows Wix's strong revenue growth of 13% and a healthy gross profit margin of 68%, supporting its competitive position. The company maintains a "GOOD" Financial Health score on InvestingPro, with particularly strong marks in growth and cash flow metrics.

JMP Securities' assessment underscores the belief that Wix's innovative tools are set to contribute positively to its market position. The firm's analysts pointed out that the AI Website Builder, in particular, is expected to play a significant role in accelerating the growth of Wix's Self Creator segment, which allows users to build websites without technical expertise.

The current industry dynamics were also discussed, with the analysts observing that Wix stands to benefit from the struggles of WordPress, a major competitor in the website creation space. Furthermore, Squarespace's recent shift to private equity ownership could present an opportunity for Wix to capture a larger share of the market.

The stability of Wix's price target reflects confidence in the company's strategy and product offerings. JMP Securities' commentary suggests that the firm's analysts see a clear path for Wix to continue its upward trajectory in the website development industry.

Investors and industry watchers will likely continue to monitor Wix's performance, especially in light of the potential for further market gains due to the ongoing challenges faced by its competitors. The reaffirmed Market Outperform rating and steady price target signal a positive outlook for Wix's stock in the near term.

In other recent news, Wix.com has been the focus of several analyst revisions and company developments. Wells Fargo (NYSE:WFC) initiated coverage of Wix.com, setting an Underweight rating and a price target of $208. This comes after Wix.com's Creative Subscription bookings saw a year-over-year growth increase from 5% to 15% in recent quarters, surpassing market expectations. However, Wells Fargo analysts expressed concerns regarding a potential slowdown in the pace of these bookings.

Simultaneously, Citi analysts raised their price target on Wix.com from $270 to $275, maintaining a Buy rating. They anticipate the company's third consecutive quarter of acceleration in the Self Creators segment and continued momentum in the Partners segment. However, they also expressed concerns about the company's fiscal year 2025 bookings growth guidance.

Furthermore, Wix.com announced the completion of its $200 million share repurchase program, which represents approximately 1.5% of the total shares outstanding. This move is seen as part of Wix's broader strategy to manage its capital structure and return value to its shareholders.

Meanwhile, Morgan Stanley (NYSE:MS) upgraded Wix.com's stock rating to Overweight and raised the price target to $276, citing growth in the Self-Creators segment and a consistent rise in the Partners segment. Lastly, Benchmark adjusted its price target on Wix.com shares upward to $250, maintaining a Buy rating, and expressed confidence in the company's ability to sustain top-line-driven leverage and consistently scale incremental flow through to free cash flow.

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

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