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On Thursday, JMP analysts maintained their Market Outperform rating and $250.00 price target for Wix.com (NASDAQ:WIX) stock, which currently trades at $152.34. The analysts highlighted Wix’s first-quarter earnings, which surpassed expectations with bookings and revenue 1% above consensus. Free Cash Flow (FCF) also exceeded consensus by approximately 5%, with the company generating robust levered free cash flow of $479.6 million over the last twelve months. Despite these positive indicators, Wix’s second-quarter revenue fell short by 1%, and the unchanged 2025 guidance suggests a heavier reliance on the second half of the year for growth. According to InvestingPro, Wix’s stock has experienced significant volatility, declining nearly 17% in the past week alone.
Wix’s Partner revenue, which has been a significant contributor to the company’s growth for the past eight quarters, experienced a slowdown. The growth rate decelerated by 5 percentage points to 24% year-over-year, affected by a 2-point foreign exchange headwind and a slowdown in Gross Payment Volume (GPV). On a brighter note, the company saw a healthy influx of new users, which were up by 7% compared to the previous year. Wix also remains focused on attracting high-intent and commerce-led users, maintaining a healthy gross profit margin of 68% and achieving overall revenue growth of nearly 13% in the last twelve months.
The company has been actively enhancing its product offerings, with recent launches including Wixel and AI Site Chat. These innovations are part of Wix’s accelerated product development over the past year. JMP analysts pointed out that with continued industry rationality, improvements in AI efficiency within Wix, and the introduction of new products, they anticipate that the company’s FCF could continue to exceed expectations. Additionally, Wix’s ongoing share buyback program is seen as a positive move that could further benefit the company’s financial performance. InvestingPro analysis reveals that management has been aggressively buying back shares, with 13 additional exclusive insights available to subscribers.
The analysts’ maintained rating and price target reflect their confidence in Wix’s ability to sustain growth and improve FCF, despite the mixed results for the first half of the year. The unchanged $250 price target suggests that JMP analysts believe the company’s stock has the potential to reach this level, supported by Wix’s strategic focus and recent product launches. Based on InvestingPro’s comprehensive analysis, which includes over 30 financial metrics and a detailed Fair Value assessment, Wix currently appears slightly undervalued. Discover more insights about Wix and 1,400+ other stocks through InvestingPro’s exclusive research reports.
In other recent news, Wix.com reported its first-quarter 2025 results, with revenue reaching $473.7 million, slightly surpassing the IBES estimate of $472.1 million. The company also recorded a gross profit of $321.859 million and a net income of $33.766 million. Free cash flow for the quarter was reported at $142.4 million, exceeding Wall Street’s forecast of $137.4 million. Looking forward, Wix.com projects its second-quarter revenue to be between $485 million and $489 million, indicating a year-over-year growth of 11-12%.
Raymond (NSE:RYMD) James analyst Josh Beck adjusted his price target for Wix.com to $250 from $300, maintaining a Strong Buy rating, while BofA Securities lowered its target to $230 but kept a Buy rating. B.Riley reiterated a Buy rating with a $240 target, highlighting strong performance in Wix’s Partner channel and self-creator segment. Meanwhile, JPMorgan maintained a Neutral rating with a $189 target, noting the company’s conservative full-year earnings guidance amid macroeconomic uncertainties.
Wix.com continues to innovate with advancements in artificial intelligence and the launch of a new product called Wixel, expanding its offerings beyond traditional web design. Despite some challenges in its Business Solutions segment, the company experienced significant growth in its partner network and self-creator segment. These developments reflect Wix.com’s strategic initiatives and its ability to attract and retain users, as noted by analysts from various firms.
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