Wix’s Strong Q1 Performance and Strategic Growth Initiatives Reinforce Buy Rating

Elizabeth Porter, an analyst from Morgan Stanley, maintained the Buy rating on Wix (WIX – Research Report). The associated price target remains the same with $207.00.

Elizabeth Porter has given her Buy rating due to a combination of factors that highlight Wix’s strong performance and potential for growth. In the first quarter, Wix reported revenue of $473.7 million, which represents a 13% year-over-year increase and exceeded guidance expectations. This growth was driven by significant momentum in their Partners segment, particularly with larger agencies, and an increase in higher-priced subscription packages.
Additionally, Wix’s Self-Creators revenue showed further acceleration, and the company saw a boost in Wix Payments, with improvements in service verticals contributing to an increased take rate. The company’s operating income and free cash flow also surpassed market expectations, indicating robust demand and effective cost management. These factors, combined with strategic initiatives aimed at enhancing retention and renewals, support a positive outlook for the second half of the year, reinforcing the Buy rating.

In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $230.00 price target.