Wix.com (WIX) Maintains Market Outperform Rating with $250 Price Target

JMP Securities analyst Andrew Boone reiterated a "Market Outperform" rating for Wix.com (WIX) with a $250 price target. This reflects stability in the evaluation of the company, with no change in expectations for growth and performance. The maintained rating suggests ongoing strength and potential in the market. Based on 21 analyst targets, the average target price is $223.63, implying an upside of 41.21% from the current price.

Wix.com Ltd. (WIX) has expanded its AI capabilities and market potential with the strategic acquisition of Base44, an innovative AI-powered platform for custom software development. The acquisition, valued at approximately $80 million, includes performance-based earn-outs extending through 2029 [1].

Base44’s core innovation lies in its fully automated, chat-based development environment, which allows users to build scalable, production-ready applications through natural language conversations. This technology aligns with the growing trend of "vibe coding," where users express their software requirements, and intelligent systems handle execution [1].

The acquisition is expected to augment Base44’s reach, user adoption, and innovation. Wix aims to integrate Base44 into its AI ecosystem, expanding its portfolio of intelligent creation tools. This move positions Wix as not only a website builder but a comprehensive digital creation platform [1].

Analysts have responded positively to the acquisition, with JMP Securities analyst Andrew Boone reiterating a "Market Outperform" rating for Wix.com (WIX) with a $250 price target. This reflects stability in the evaluation of the company, with no change in expectations for growth and performance [3].

The acquisition is part of Wix’s broader strategy to embed AI across its platform, enhancing tools for website generation, intelligent design, and content creation. Recent launches like Wixel, a next-gen visual design platform, and the acquisition of Hour One, a pioneer in generative AI media creation, further strengthen Wix’s position in AI-driven digital experiences [1, 2].

Despite the ongoing macroeconomic uncertainty, Wix has taken a cautious stance on its full-year outlook, especially for its Business Solutions unit. Commerce and GPV are more sensitive to consumer trends and economic shifts. However, the company remains focused on strategic AI investments and new product launches to drive growth [1].

Wix’s stock has declined 53.2% in the past year against the Computers - IT Services industry's growth of 53.3%, but analysts remain optimistic about its potential. The average target price of $223.63 from 21 analyst targets implies an upside of 41.21% from the current price [3].

References:
[1] https://finance.yahoo.com/news/wix-acquires-base44-boost-ai-130000539.html
[2] https://www.investing.com/news/analyst-ratings/barclays-reiterates-wixcom-stock-rating-with-240-price-target-93CH-4101929
[3] https://www.gurufocus.com/news/2934334/wix-wix-acquires-ai-platform-base44-for-80-million