Wix Is Set for Growth With Expanding Margins and Cash Flow, Analyst Upgrades Stock
Portfolio Pulse from Anusuya Lahiri
Piper Sandler analyst Clarke Jeffries upgraded Wix.com (NASDAQ:WIX) from Neutral to Overweight, raising the price target to $200. Despite skepticism about growth acceleration, Wix's valuation and margin expansion potential make it a compelling investment. The Web Builder space, including Wix, GoDaddy, and Squarespace, has outperformed the market in 2024.
September 23, 2024 | 7:00 pm
News sentiment analysis
Sort by:
Ascending
NEUTRAL IMPACT
GoDaddy is mentioned as trading at parity with Wix on 2025 free cash flow. The analyst suggests revisiting investment theses for GoDaddy and Wix due to their current valuations and growth potential.
GoDaddy is mentioned in comparison to Wix, highlighting its valuation parity on 2025 free cash flow. The analyst suggests revisiting investment theses for both companies, indicating a neutral short-term impact.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Squarespace is mentioned in the context of a revised deal and strong year-to-date performance in the Web Builder space. The analyst notes the importance of revisiting investment theses for companies like Squarespace.
Squarespace is mentioned in the context of a revised deal and strong performance. The analyst's suggestion to revisit investment theses indicates a neutral short-term impact.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 30
POSITIVE IMPACT
Wix.com has been upgraded by Piper Sandler to Overweight with a new price target of $200. The company has shown significant margin expansion and stable growth, making it a compelling investment despite some skepticism about growth acceleration.
The upgrade from Neutral to Overweight and the increased price target indicate a positive outlook from the analyst. Wix's significant margin expansion and stable growth contribute to its attractiveness as an investment, despite some concerns about growth acceleration.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100