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Investing.com - Raymond James has lowered its price target on Wix.com (NASDAQ:WIX) to $150.00 from $200.00 while maintaining a Strong Buy rating on the stock. This adjustment comes as Wix shares are trading near their 52-week low of $99.31, having declined nearly 53% year-to-date according to InvestingPro data.
The adjustment follows Wix.com’s recent earnings report, which showed a clean beat on expectations and raised bookings to a midpoint of $2.07 billion, exceeding Raymond James’ preview estimate of $2.065 billion. Despite recent market challenges, Wix remains profitable with diluted earnings per share of $2.36 over the last twelve months.
Despite the positive bookings performance, Raymond James cited an "effective guide down on margins" as the primary reason for the reduced price target, placing Wix.com in the middle of discussions about return on AI capital investment. The company maintains a strong gross profit margin of 68.5% and has been aggressively buying back shares, one of several InvestingPro Tips highlighting the company’s financial strategy.
The new $150 price target is based on 11x 2027 EV/FCF, which Raymond James notes is toward the bottom decile of the SaaS universe on a next-twelve-months basis, reflecting "limited AI model visibility." Currently, Wix trades at a PEG ratio of 0.84, suggesting it may be undervalued relative to its growth prospects.
Raymond James remains constructive on Wix.com’s long-term prospects, suggesting that AI could become an "expansionary tailwind" and recommending investors "buy the dip" as the company’s Vibe Coding SMB market could expand to address both web presence and adjacent mid/back office SMB functionality. With revenue growing at 13.2% year-over-year and analysts setting price targets as high as $255, Wix is among 1,400+ US equities with comprehensive Pro Research Reports available on InvestingPro.
In other recent news, Wix.com reported mixed third-quarter results, with revenue and bookings slightly surpassing Street consensus. The company achieved a revenue of $505 million and a free cash flow of $159 million, excluding acquisition costs, which exceeded expectations. However, the non-GAAP operating income fell short due to increased marketing expenses related to the Base44 acquisition. Evercore ISI and BofA Securities have both lowered their price targets for Wix.com, citing higher marketing costs and other factors, with new targets set at $160 and $170, respectively. Despite these adjustments, both firms maintain positive ratings on the stock, with Evercore ISI rating it as Outperform and BofA Securities as a Buy. Benchmark has also maintained its Buy rating, although it noted potential downward revisions to the company’s 2025 bookings growth guidance. Additionally, Wix.com has scheduled its Annual General Meeting of Shareholders for December 18, 2025, in Tel Aviv, Israel. In a move to enhance its services, Wix.com has fully integrated Royal Mail into its Wix Shipping service for UK merchants, offering automated shipping operations and exclusive pricing.
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