Evercore analyst Jian Li maintains $Wix.com (WIX.US)$ with a buy rating, and adjusts the target price from $210 to $250.
According to TipRanks data, the analyst has a success rate of 66.7% and a total average return of 9.3% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Wix.com (WIX.US)$'s main analysts recently are as follows:
Q3 results surpassed expectations along with upgrades to projections for revenue, billings, and free cash flow, suggesting sturdy exit rates for FY24 that could sustain into FY25. Enhancement of core initiatives, including those with Studio, bolstering Partners' durability, and AI initiatives that foster growth for Self-Creators, are expected to drive continued performance improvement into 2025.
While Wix.com reported another solid quarter, expectations were set for a quicker growth in self-creator segment. Despite these anticipations, both partner and business solutions showed acceleration, even with challenging comparisons. Additionally, the company's free cash flow margin is nearing the 30% mark, and it is on track to reach $500M in free cash flow by 2024, ahead of its previous long-term forecasts.
Following a report of robust growth in Q3 and optimistic guidance for Q4 that surpasses existing market predictions for bookings growth and free cash flow, there is an increased valuation multiple now being applied due to Wix.com's consistently recurring revenue stream, introduction of new AI-driven products, and anticipated improvements in growth and margins.
Note:
TipRanks, an independent third party, provides analysis data from financial analysts and calculates the Average Returns and Success Rates of the analysts' recommendations. The information presented is not an investment recommendation and is intended for informational purposes only.
Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
TipRanks provides a ranking of each analyst up to 5 stars, which is representative of all recommendations from the analyst. An analyst's past performance is evaluated on a scale of 1 to 5 stars, with more stars indicating better performance. The star level is determined by his/her total success rate and average return.
