Analyst Brent Thill from Jefferies maintained a Buy rating on Wix (WIX – Research Report) and increased the price target to $265.00 from $260.00.
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Brent Thill has given his Buy rating due to a combination of factors including Wix’s promising financial projections and innovative advancements. The projected revenue growth for FY25 is expected to accelerate to 14-16% excluding foreign exchange impacts, which surpasses the FY24 growth of 13%. Additionally, the free cash flow margins are anticipated to improve significantly to 31-32% ex-FX, which stands favorably against the Street’s estimate of 28.6%.
Moreover, Wix is experiencing continued success with its Studio platform and AI-driven innovations, which are enhancing user conversion rates and monetization. The upcoming launch of new Self-Creator products in the spring and fall of FY26 is expected to further bolster growth. Management’s disciplined approach to operating expenses and performance marketing spend is another positive aspect supporting the Buy rating. Overall, these strategic initiatives and financial prospects underpin Thill’s optimistic outlook for Wix.
According to TipRanks, Thill is a 5-star analyst with an average return of 9.6% and a 59.35% success rate. Thill covers the Technology sector, focusing on stocks such as Microsoft, Oracle, and Salesforce.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $276.00 price target.