Wix.com stock price target lowered to $170 by BofA Securities

Investing.com - BofA Securities has lowered its price target on Wix.com (NASDAQ:WIX) to $170.00 from $210.00 while maintaining a Buy rating on the stock. Despite the reduced target, InvestingPro data shows Wix is currently trading at $126.92, significantly below its Fair Value, suggesting the stock may be undervalued even with BofA’s lowered expectations.

The web development platform company reported revenue of $505 million and free cash flow of $159 million excluding acquisition costs, exceeding Street expectations of $502 million and $153 million respectively. This performance aligns with Wix’s strong revenue growth trend, which InvestingPro data shows at 13.04% over the last twelve months.

Wix’s Business Solutions segment showed significant improvement with 20% year-over-year growth, accelerating 8 percentage points and outperforming BofA’s earlier estimate of 17%, driven by Commerce and business applications including Google Workspace.

The company’s GAAP Operating Income turned negative due to $32 million in acquisition expenses related to Base44 and HourOne, while Non-GAAP Operating Income reached $90 million, falling short of BofA’s estimate of $93 million.

BofA Securities analyst Michael McGovern attributed the lower operating income to increased marketing expenses, noting management’s comments about accelerated advertising for Base44 and branding initiatives.

In other recent news, Wix.com has maintained its original 2025 constant currency Bookings guidance despite foreign exchange fluctuations, as noted by Benchmark, which reiterated its Buy rating and set a price target of $230.00. The company announced its Annual General Meeting of Shareholders is scheduled for December 18, 2025, in Tel Aviv, allowing shareholders to vote on various proposals. Wix.com has also integrated Royal Mail into its Wix Shipping service for UK merchants, enabling automated shipping operations and exclusive pricing through its partner Shippo. Additionally, Wix.com has partnered with PayPal to offer AI-powered shopping capabilities, allowing merchants to utilize PayPal’s agentic commerce services without extra technical implementation. Needham has maintained its Buy rating on Wix.com with a $200.00 price target, citing positive feedback on Wix Studio’s adoption. These developments reflect Wix.com’s ongoing efforts to enhance its services and maintain investor confidence.

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