Wix (WIX – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Elizabeth Porter from Morgan Stanley maintained a Buy rating on the stock and has a $207.00 price target.
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Elizabeth Porter’s rating is based on several factors that highlight both the challenges and potential for Wix. Despite a reduction in the fiscal year 2025 guidance, which led to a decline in stock value, Wix demonstrated strong performance in the first quarter across key metrics such as bookings, revenue, operating margins, and free cash flow. This indicates a solid top-of-funnel demand, which counters concerns about competition and AI displacement risks.
Porter acknowledges that while Wix’s management has adopted a more conservative outlook due to macroeconomic uncertainties, particularly in the Business Solutions segment, the company’s shares are trading at a relatively low valuation compared to peers. This suggests that the market may have already priced in potential risks, including those related to AI disruption. Therefore, with consistent execution, Wix has the potential for a re-rating, making it a compelling buy opportunity.
In another report released on June 10, Barclays also maintained a Buy rating on the stock with a $240.00 price target.