Wix.com (WIX) PT Raised to $210 at Benchmark
Benchmark analyst Mark Zgutowicz raised the price target on Wix.com (NASDAQ: WIX) to $210.00 (from $175.00) while maintaining a Buy rating.
The analyst commented: "WIX’s better-than-expected 1Q results and guidance indicate improved visibility and confidence related to topline acceleration and subsequent op. leverage. Notably, management increased ‘24E FCF margin guidance by +400bps (from the prior midpoint) to 26.0%. WIX now expects accelerative y/y revenue growth in ‘25E driven by 2H bookings inflection (+16% y/y) within Self Creators (SC) and Partners. WIX expects SC bookings acceleration will be driven by new AI product launches and associated subscription conversion lift, while Studio’s better-than-expected contribution YTD is driving accelerative Partners bookings growth while attracting “bigger” merchants vs. historical. Note, ‘24E revenue guidance assumes subscription conversion incrementality from Studio/AI integrations does not improve from 1Q levels, suggesting that ‘24E Bookings guidance is potentially conservative, presenting a ‘25E revenue catalyst. WIX now trades at ~17.8x ‘25E EV/FCF (TBC est. reflecting 5/20 closing price of $168), below its 3Y average of 25.0x, and when considering potential topline catalysts emerging NTM, we still see attractive upside in the shares. We reiterate our Buy rating and raise our DCF-based PT to $210 from $175."