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Investing.com - JMP Securities reiterated its Market Outperform rating and $250 price target on Wix.com (NASDAQ:WIX) on Friday, following the company’s acquisition of Base44. According to InvestingPro data, Wix currently trades at $158.50, with analysts’ targets ranging from $168 to $250, suggesting significant upside potential.
Wix announced the acquisition of Base44, a platform that enables users to build custom software and applications using natural language, further expanding its artificial intelligence capabilities. This addition complements Wix’s growing AI-powered product suite, which now includes vibe coding, content generation, and editing features. The company’s strategic investments are supported by solid financials, with revenue growing at ~13% year-over-year to $1.8 billion and a healthy gross profit margin of 68%.
The Base44 acquisition follows Wix’s recent purchase of Hour One, which enhanced the company’s AI content generation capabilities. These strategic moves demonstrate Wix’s continued focus on integrating AI technology across its website building platform.
Wix CEO Avishai Abrahami published a blog post discussing his vision for the company and addressing the defensibility of website builders in the age of AI. The post explored how AI is evolving digital interactions and driving increased use of digital services, commerce, and activities.
JMP Securities noted that these AI-driven changes should make having a digital presence "even more of a requirement" and reinforce the structural digital trends that have historically benefited Wix’s business model and growth trajectory.
In other recent news, Wix.com has been the subject of various analyst evaluations and strategic developments. Barclays (LON:BARC) maintained its Overweight rating for Wix.com, setting a price target of $240. This comes after Wix.com’s acquisition of "Hour One," a company specializing in generative AI media creation. Cantor Fitzgerald also kept an Overweight rating with a $200 price target, focusing on Wix’s fiscal year 2025 bookings guidance and potential growth drivers such as new product launches and stable transaction volumes.
Baird upgraded Wix.com from Neutral to Outperform, although it lowered the price target to $190. The analyst highlighted the attractiveness of Wix.com’s product offerings and long-term investment potential. Benchmark reduced its price target to $230 but retained a Buy rating, citing concerns over a slowdown in revenue growth while noting the company’s strong free cash flow margin guidance. Piper Sandler also adjusted its price target to $225, maintaining an Overweight rating, and pointed out a deceleration in the Partners segment growth as a concern.
These recent developments reflect a mix of optimism and caution among analysts, with focus on Wix.com’s strategic acquisitions, product offerings, and financial projections.
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