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Investing.com - Wells Fargo lowered its price target on Wix.com (NASDAQ:WIX) to $184.00 from $216.00 on Thursday, while maintaining an Overweight rating on the stock.
The price target reduction follows a 20% drop in Wix.com shares, which occurred while the broader market (QQQ) gained 1%, as investors expressed concerns about the company’s non-GAAP operating income and free cash flow outlook for 2026. The stock is currently trading at $101.70, down from $126.92 before the drop, and has fallen nearly 44% over the past six months according to InvestingPro data.
Wells Fargo now models Wix.com’s 2026 revenue and bookings growth at 18% year-over-year, with a 4% non-GAAP Base44 gross margin and 25% sales and marketing growth.
The revised model implies 2026 non-GAAP gross margins will decline 180 basis points year-over-year, resulting in a 20% reduction in non-GAAP operating income estimates compared to Wells Fargo’s previous forecast, while the free cash flow revision is a more modest 5%.
Despite the price target reduction, Wells Fargo believes estimates have likely bottomed and sees a positive catalyst path ahead, including 2026 bookings acceleration, direct-to-consumer product developments, and an upcoming analyst day. InvestingPro data shows Wix is currently trading near its 52-week low of $99.31, but appears undervalued based on Fair Value calculations. The broader analyst consensus remains bullish with an average price target suggesting significant upside potential. For deeper insights and 14 additional ProTips on Wix.com, check out the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Wix.com reported earnings that exceeded expectations, with revenue reaching $505 million and free cash flow hitting $159 million, surpassing Street estimates of $502 million and $153 million, respectively. Despite these positive results, several financial analysts have adjusted their price targets for the company. Raymond James lowered its price target to $150 from $200, citing margin concerns, but maintained a Strong Buy rating. Evercore ISI also reduced its target to $160 from $250, pointing to increased marketing expenses and lower gross margin forecasts, while keeping an Outperform rating. BofA Securities adjusted its target to $170 from $210, maintaining a Buy rating. Meanwhile, Benchmark reiterated a Buy rating with a $230 price target, despite potential guidance revisions. Additionally, Wix.com announced its Annual General Meeting of Shareholders is scheduled for December 18, 2025, in Tel Aviv, Israel, where shareholders can vote on various proposals.
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