William Blair analyst Arjun Bhatia has maintained their bullish stance on WIX stock, giving a Buy rating today.
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Arjun Bhatia has given his Buy rating due to a combination of factors that reflect Wix’s promising financial performance and strategic initiatives. The company reported strong third-quarter results, surpassing expectations in revenue, bookings, and free cash flow margin. This positive performance was largely driven by robust top-of-funnel activity and impressive cohort behavior within its core business. Additionally, Wix’s partners and Wix Studio have demonstrated significant growth compared to self-creators, highlighting the company’s ability to capitalize on its strategic partnerships.
Moreover, Wix’s investment in Base44 is seen as a strategic move to capture growing market demand, despite the initial upfront costs associated with its commercialization. The company has revised its full-year guidance upwards, expecting higher bookings and revenue growth. Although there are concerns about temporary profitability impacts due to increased investments in AI and marketing, the long-term growth potential and strategic initiatives like AI and Studio are viewed positively. These factors collectively contribute to Arjun Bhatia’s optimistic outlook and Buy rating for Wix’s stock.
In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $170.00 price target.