Wix.com (WIX) PT Lowered to $295 at Raymond James

Raymond James analyst Aaron Kessler lowered the price target on Wix.com (NASDAQ: WIX) to $295.00 (from $340.00) while maintaining an Outperform rating.

The analyst commented, "Wix delivered strong 3Q revenues and continued sub momentum (165% y/y premium sub net adds) driven by increased demand as businesses continue to shift online. Wix also saw strong adoption for business applications and strong adoption of higher priced vertical and ecommerce solutions. 4Q revenue guide was modestly above street though investors were likely looking for more (Wix noted potential for seasonally slower growth). We maintain our positive view on Wix given: 1) We believe COVID-19 is driving a step function in DIY platforms as SMBs are now feeling the urgency to have an online presence; 2) expect continued strength in revenue/sub driven by higher end solutions (ecommerce and vertical offerings) as well as continued momentum for business solutions (G-Suite, Ascend, Wix Payments; and 3) expect strong long-term EBITDA and FCF leverage given subscription nature of the business."

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