Wells Fargo Starts Wix.com (WIX) at Underweight

Wells Fargo analyst Alec Brondolo initiates coverage on Wix.com (NASDAQ: WIX) with a Underweight rating and a price target of $208.00.

The analyst comments: "we are initiating with an Underweight rating. WIX Creative Subscription bookings have accelerated from +5% y/y in 4Q:23 (ex. B2B lapping) to +15% y/y in 3Q:24, and consensus implies 14% growth in 2024. As a result of the acceleration in bookings, WIX stock meaningfully outperformed in 2024 (+105% vs. QQQ +32%). While to some extent, the acceleration has been driven by the aforementioned improvements to the partner business, we also believe price increases taken in 1Q:24 have contributed meaningfully. As WIX laps these price increases, we anticipate creative subscription bookings will slow faster than consensus anticipates, leaving our segment bookings estimate 3% below consensus exiting 2025. As a result of below consensus estimates, we initiate Underweight, with a $208 price target implying 20x 2026 FCF / share of $10.42."

For an analyst ratings summary and ratings history on Wix.com click here. For more ratings news on Wix.com click here.

Shares of Wix.com closed at $238.89 yesterday.

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