Ygal Arounian, an analyst from Citi, maintained the Buy rating on Wix. The associated price target remains the same with $220.00.
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Ygal Arounian has given his Buy rating due to a combination of factors that suggest a positive outlook for Wix. The company is expected to benefit from advancements in artificial intelligence and the momentum of Wix Studio, alongside strong cohort trends and a stabilized macroeconomic environment. Despite cautious investor sentiment due to deceleration in first-quarter growth and maintained guidance, Arounian believes that Wix’s management remains confident in its core drivers and has demonstrated strong performance in these areas.
Additionally, Arounian notes that the Partners business is healthy and that Wix is well-positioned to leverage GenAI as a long-term advantage. The analyst is optimistic about Wix’s growth trajectory, particularly in the second half of the year, and views the company’s valuation as attractive. Despite some resurfacing concerns around AI risks, Arounian believes Wix will ultimately benefit as leading platforms continue to gain market share. Overall, the expected share price return of 42.9% supports the Buy rating.
Arounian covers the Technology sector, focusing on stocks such as Trade Desk, Bumble, and Verisign. According to TipRanks, Arounian has an average return of 9.0% and a 48.49% success rate on recommended stocks.
In another report released on July 16, Barclays also maintained a Buy rating on the stock with a $240.00 price target.