Wix.com (WIX) PT Lowered to $160 at Evercore ISI

Evercore ISI analyst Mark Mahaney lowered the price target on Wix.com (NASDAQ: WIX) to $160.00 (from $250.00) while maintaining a Outperform rating.

The analyst commented: "We maintain our Outperform rating on WIX but lower our price target to $160 from $250 prior, reflecting the downdraft in the stock’s valuation in recent months and our lower FY27 EBITDA and FCF forecasts. WIX reported a mixed Q3 and guide as revenue, bookings and gross profit modestly exceeded Street consensus, FCF was in-line (adjusted for Base44 earn out), while Non GAAP Operating Income fell short on higher marketing expense (supporting Base44). FY25 bookings and revenue guides were raised on Wix cohort and Base44 strength (Base44 now expected to exit FY25 at $50MM+ ARR vs. prior $40-$50MM outlook), but GM guide was lowered to 68-69% vs. 69% prior and Non-GAAP OpEx guide was raised to 50% of revenue from 49% prior; (adjusted) FCF guide was relatively unchanged despite more challenging cash flow dynamics at Base44 (greater share of customers on monthly plans). Revised FY25 guide suggests ~300 bps GM contraction and further significant acceleration in marketing spend to support Base44 in Q4:25—trends we expect to carry into FY26. While this level of investment is clearly out of step with investor expectations (and our read on the company’s messaging around the time of September conferences), driving shares down ~19% intraday, we are encouraged by strength in the core business and believe that Base44 remains a compelling offensive/defensive opportunity, with growing category audience share (now at ~10%) and ramping ARR (expected to exit FY25 at $50MM+) that would likely garner a private market valuation approaching $1B on a standalone basis, given recent financing rounds for Lovable (at ~16x EV/ARR) and Cursor (at ~27x EV/ARR)."

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