Wix.com stock price target cut to $250 at Raymond James

On Wednesday, Raymond (NSE:RYMD) James analyst Josh Beck adjusted the price target on Wix.com (NASDAQ:WIX), reducing it to $250 from the previous $300, while maintaining a Strong Buy rating on the shares. The $8.51 billion web development platform company currently maintains a strong consensus among analysts, with targets ranging from $166 to $300. According to InvestingPro analysis, the stock appears slightly undervalued based on its Fair Value calculations. Beck’s analysis followed Wix’s first-quarter 2025 performance, where the company reported a 13.4% year-over-year increase in bookings, surpassing Wall Street’s expectations of 11.7%. This performance aligns with the company’s broader growth trajectory, as evidenced by its impressive 67.93% gross profit margin and 12.74% revenue growth over the last twelve months. Despite this beat, Wix did not raise its financial outlook, mirroring a similar response from GoDaddy (NYSE:GDDY). The company’s decision has been attributed to caution in the face of macroeconomic uncertainties, particularly those affecting transactional revenues, which comprise approximately 12% of Wix’s revenue.

Beck highlighted Wix’s reiteration of its strength in March and April and defended the company’s conservative stance as a prudent move amidst potential macroeconomic volatility. The analyst perceives the current dip in Wix stock as an attractive entry point for buyers.

The report also underscored Wix’s advancements in the realm of artificial intelligence (AI), which are believed to position the company as a frontrunner in the commercialization of AI technologies. With a GREAT Financial Health Score from InvestingPro, which offers 12 additional exclusive insights about Wix’s performance and potential, the company appears well-positioned to invest in and capitalize on AI innovations. For detailed analysis of Wix’s AI initiatives and financial strength, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers. Wix has achieved significant product milestones, including an AI-powered onboarding web design flow that has improved conversion rates and led to an acceleration in bookings for the first-quarter cohort.

Furthermore, Wix has launched a new standalone product called Wixel, likened to Canva and Figma, which represents a strategic move to expand its offerings beyond its traditional web design roots into the broader creative category. Additionally, the integration of a model-context protocol (MCP) for select business solutions was mentioned, which Beck describes as an analogy to APIs in the AI era, acknowledging the rapidly evolving landscape of software development and consumption.

In other recent news, Wix.com reported its first-quarter 2025 results, revealing a revenue of $473.7 million, slightly surpassing the IBES estimate of $472.1 million. The company also recorded a net income of $33.766 million and a free cash flow of $142.4 million, exceeding Wall Street’s expectations. Looking ahead, Wix.com projects its second-quarter revenue to be between $485 million and $489 million, marking an anticipated year-over-year increase of 11-12%. Despite these positive figures, BofA Securities adjusted its price target for Wix.com to $230 from $270, while maintaining a Buy rating, citing mixed results in bookings and revenue against market expectations. Benchmark also revised its price target to $245 from $260, keeping a Buy rating, due to macroeconomic factors affecting 2025 projections.

JPMorgan maintained a Neutral rating with a $189 price target, noting the company’s cautious full-year earnings guidance despite strong new customer cohorts. Meanwhile, B.Riley reiterated its Buy rating with a $240 price target, emphasizing Wix.com’s robust performance in the Partner channel and self-creator segment. The company has maintained its full-year revenue outlook for 2025, projecting between $1,970 million and $2,000 million, while also highlighting operational leverage and efficiency. These recent developments underscore Wix.com’s strategic initiatives and its ability to navigate potential macroeconomic uncertainties.

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