Analyst Ygal Arounian from Citi maintained a Buy rating on Wix (WIX – Research Report) and increased the price target to $280.00 from $270.00.
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Ygal Arounian has given his Buy rating due to a combination of factors, including Wix’s impressive financial performance and strong future prospects. The company reported a robust fourth quarter, with bookings and free cash flow surpassing expectations. This performance, combined with guidance indicating continued top-line growth and significant margin expansion by 2025, supports a positive outlook. Despite a recent dip in stock price, Arounian believes this does not reflect the underlying strength of Wix’s business.
Furthermore, the company’s 2025 projections of 14% year-over-year bookings growth and 31.5% free cash flow margins indicate solid momentum driven by product initiatives. Wix’s focus on ramping up its Studio and AI offerings is expected to contribute significantly to growth. The company is also working on product enhancements and cost efficiencies, which are anticipated to further improve margins. With new products in the pipeline, Arounian sees potential upside, particularly as new AI and Self Creator products are set to launch, positioning Wix well for sustained growth.
According to TipRanks, Arounian is a 5-star analyst with an average return of 11.8% and a 51.94% success rate. Arounian covers the Technology sector, focusing on stocks such as GoDaddy, Verisign, and Wix.
In another report released today, JMP Securities also reiterated a Buy rating on the stock with a $250.00 price target.