JMP Securities keeps Wix.com Market Outperform rating, lowers PT to $160.

JMP Securities keeps Wix.com Market Outperform rating, lowers PT to $160.

JMP Securities has revised its price target for Wix.com (NASDAQ:WIX), reducing it to $160 while maintaining a Market Outperform rating. The firm cited Wix’s investments in Base44 as the primary reason for the reduced price target, which prompted a lower operating income expectation [1].

The stock currently trades at $122.85, with analyst targets ranging from $160 to $255 [1]. The new price target of $160 is based on a 15x 2026E free cash flow of $635 million, down from the previous valuation of 23x 2026E free cash flow of $657 million [1]. This implies approximately 4x 2026E enterprise value to revenue multiple, representing a slight premium to comparable companies [1].

Citizens JMP justified this premium valuation based on Wix’s approximately 30% free cash flow margins and the potential for integrating Base44 [1]. Despite these concerns, Wix maintains strong fundamentals with a 68% gross profit margin and 13% revenue growth in the last twelve months [1].

Recent analyst actions reflect a diverse range of perspectives on Wix.com’s recent performance and strategic direction. Cantor Fitzgerald lowered its price target to $160, citing growth concerns, while Scotiabank raised its target to $255, highlighting Wix’s shift toward monetization strategies [1]. UBS adjusted its price target downward to $200 due to margin concerns, despite Wix raising its full-year booking guidance by $15 million [1]. Benchmark reaffirmed its Buy rating and $230 price target, noting strong business fundamentals and an increase in gross payment volume [1]. Raymond James maintained a Strong Buy rating with a $250 price target, anticipating momentum in new products and potential positive developments in the company’s bookings outlook [1].

References:
[1] https://www.investing.com/news/analyst-ratings/citizens-jmp-lowers-wixcom-stock-price-target-to-160-on-base44-investments-93CH-4182008