Wix.com (WIX) Stock: $85 Price Target And Overweight Rating

By Amit Chowdhry ● May 17, 2022
  • The shares of Wix.com (NASDAQ: WIX) have received an $85 price target from Morgan Stanley. These are the details.

The shares of Wix.com (NASDAQ: WIX) have received an $85 price target from Morgan Stanley. And Morgan Stanley analyst Elizabeth Elliott is maintaining an “Outperform” rating on the shares.

Elliott adjusted the rating while citing the company reported Q1 revenue roughly in line with the mid-point of guidance while bookings were +2% above Street benefiting from the LegalZoom B2B contribution.

But Elliott acknowledged there were a few negatives in the quarter including profitability coming in lower quarter-over-quarter and year-over-year due to the company 1.) Absorbing a full year of hiring expenses in FY22; 2.) Q1 seasonally high marketing expenses and 3.) FX headwinds

“Wix is committed to improving profitability with gross margin expanding (leverage on Customer Care and Payments) and tighter opex (slower hiring and R&D) supporting ~5 point of FCF margin expansion through 2025 to achieve 20% FCF margin. We are encouraged by the shift in focus to profitability after heavy investment over the last two years but look to details at the analyst day on Thursday to drive confidence in the ability to execute,” said Elliott in a research note.

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