Wix.com stock rating reaffirmed at Buy by Benchmark on strong bookings

Investing.com - Benchmark has reiterated its Buy rating and $230.00 price target on Wix.com (NASDAQ:WIX) following the company’s second-quarter results. The target aligns with broader analyst sentiment, as InvestingPro data shows consensus remains strongly bullish with price targets ranging from $166 to $250.

The web development platform demonstrated strengthening business fundamentals with a sequential acceleration in bookings, showing a one-point increase on an FX-neutral basis. Gross payment volume (GPV) accelerated by 120 basis points quarter-over-quarter, partly driven by new Studio cohort incrementality, especially in the U.S. market. This growth contributed to the company’s impressive 13% year-over-year revenue increase to $1.87 billion, with a healthy gross margin of 68%.

Partners now account for more than 55% of total GPV compared to 37% of second-quarter revenue, which management attributes to an upmarket push supported by AI innovation.

The company’s Base44 acquisition, completed in June, is expected to reach approximately $40-50 million in annual recurring revenue (ARR) by year-end, a substantial increase from just a few million in ARR at the time of acquisition.

Wix.com emphasized that "vibe coding" represents the future of web development and will serve as a major growth driver for the company in 2026.

In other recent news, Wix.com reported its second-quarter results, revealing revenue and free cash flow that exceeded prior estimates by 1% and 4%, respectively. The company also noted an 11% year-over-year growth in bookings, aligning closely with analyst expectations. In response to these results, Cantor Fitzgerald adjusted its price target for Wix.com to $160, maintaining an Overweight rating. Meanwhile, Scotiabank (TSX:BNS) raised its price target to $255, citing a shift in Wix’s business model towards monetization quality and AI-led upsell strategies. Raymond (NSE:RYMD) James has reiterated a Strong Buy rating with a $250 price target, expressing optimism about Wix’s Studio and new self-creator products. Benchmark also maintained a Buy rating with a $230 price target, highlighting upcoming price increases across several plans. Additionally, Wix launched its AI Visibility Overview tool, designed to enhance brand visibility in AI-powered search engines, marking a significant step in their Generative Engine Optimization initiative. These developments reflect Wix’s ongoing efforts to adapt and innovate in a competitive market.

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