Analyst Bernie McTernan from Needham maintained a Buy rating on Wix and keeping the price target at $200.00.
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Bernie McTernan has given his Buy rating due to a combination of factors, primarily revolving around positive developer checks and market feedback. The adoption of Wix Studio has been slightly better than anticipated, indicating a healthy reception of the product post-launch. Additionally, there has been a notable increase in the number of leads generated through the Wix marketplace compared to six months ago, showcasing a positive trend in user engagement.
However, McTernan also notes a decline in the number of developers in the marketplace, which tempers the optimism slightly. Despite this, data from Similar Web indicates that the steep ramp in Base44’s Annual Recurring Revenue (ARR) has stabilized, suggesting that revenue estimates for the upcoming year are achievable, if not conservative. The checks also point to robust Partner revenue and potential gains from a new self-creator product yet to be launched, further supporting the Buy rating.