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Investing.com -- Wells Fargo upgraded Wix (NASDAQ:WIX).com to Overweight from Equal Weight on growing confidence that the website builder can raise prices in 2026, particularly for its newer Wix Studio product.
The brokerage lifted its 2026 and 2027 bookings estimates by 2% and raised its price target to $216 from $173, based on a higher forecast for free cash flow.
Wix currently trades at about 10 times Wells Fargo’s 2027 free cash flow estimate, a discount the analysts said may not fully reflect the company’s growth potential or manageable exposure to risks from generative AI tools.
Recent checks with partners suggested positive sentiment around Wix Studio and the company’s AI capabilities, while enthusiasm for WordPress, a major competitor, may be softening, the analysts said.
The note also highlighted that Wix Studio is currently priced the same as Wix’s core editor, despite offering more advanced features.
Wells Fargo (NYSE:WFC) expects Wix to introduce a pricing premium for Studio in 2026, similar to what it did with EditorX in early 2023.
The firm is now modeling an 8% price increase for the core builder and a 15% increase for Studio next year, which would bring creative subscription bookings about 2% ahead of consensus estimates.
Although the company’s April product launch, Wixel, fell short of expectations, the analysts see potential for a more impactful release in the fall, with updates to AI-powered website and app builders.
They flagged this, along with a planned analyst day, as possible catalysts for the stock.
While acknowledging that new AI competitors are emerging, Wells Fargo said their current market share remains small and that Wix could still find ways to use AI to lift average revenue per user or improve conversion.