Wix Is Set for Growth With Expanding Margins and Cash Flow, Analyst Upgrades Stock

Benzinga09-24

Piper Sandler analyst Clarke Jeffries upgraded Wix.com (NASDAQ:WIX) from Neutral to Overweight and raised the price target from $184 to $200. As the growthiest asset in the Web Builder space ...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWix Is Set for Growth With Expanding Margins and Cash Flow, Analyst Upgrades Stock\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-09-24 03:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/wix-set-growth-expanding-margins-190024607.html><strong>Benzinga</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Piper Sandler analyst Clarke Jeffries upgraded Wix.com (NASDAQ:WIX) from Neutral to Overweight and raised the price target from $184 to $200.\nAs the growthiest asset in the Web Builder space ...</p>\n\n<a href=\"https://finance.yahoo.com/news/wix-set-growth-expanding-margins-190024607.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"GDDY","symbol_name":"Godaddy Inc.","start_time":0,"source_url":"https://finance.yahoo.com/news/wix-set-growth-expanding-margins-190024607.html","article_id":"2469215491","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/TxdNn_sphkHjE_5GeqgmiQ--~B/aD01NTM7dz05ODM7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/Benzinga/9b48b825104c77e9f4fc44844e06d6ef"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2469215491","pubTimestamp":1727118024,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Piper Sandler analyst Clarke Jeffries upgraded Wix.com  from Neutral to Overweight and raised the price target from$184to$200.As the growthiest asset in the Web Builder space historically, Wix has undergone one of the most significant transformations over the past two years, expanding free cash flow margins by 28pts in two years while growth has remained stable, Jeffries noted.The heart of that concern has stayed the same; Jeffries is still skeptical about some of the acceleration forecasted for the second half. However, from a valuation perspective, Wix stock today trades at parity to GoDaddy Inc  on calendar 2025 free cash flow, despite being a double-digit grower and presenting margin expansion potential beyond 2025, to the long-term free cash flow margin target of 35%.The analyst noted that both names are sitting today at ~$160, ~17 times calendar 2025 free cash flow, and demonstrating accelerating Bookings growth year-to-date. Looking to 2025, he noted the differentiator for stock","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["rate"],"viewcount":null,"language":"en","relate_stocks":{"GDDY":"Godaddy Inc.","WIX":"Wix.Com Ltd"},"translate_title":"Wix有望实现增长，利润率和现金流不断扩大，分析师上调股票评级","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"GDDY":0.9,"WIX":0.9},"content_text":"Piper Sandler analyst Clarke Jeffries upgraded Wix.com (NASDAQ:WIX) from Neutral to Overweight and raised the price target from $184 to $200.\nAs the growthiest asset in the Web Builder space historically, Wix has undergone one of the most significant transformations over the past two years, expanding free cash flow margins by 28pts in two years while growth has remained stable, Jeffries noted.\nWhen the analyst downgraded earlier this year, near-term upside seemed contingent on growth outcomes above and beyond what he was willing to model.\nAlso Read: Wix’s Q2 Earnings: Revenue And Profit Beat, Strong Performance in Partner And Subscription Segments\nThe heart of that concern has stayed the same; Jeffries is still skeptical about some of the acceleration forecasted for the second half. However, from a valuation perspective, Wix stock today trades at parity to GoDaddy Inc (NYSE:GDDY) on calendar 2025 free cash flow, despite being a double-digit grower and presenting margin expansion potential beyond 2025, to the long-term free cash flow margin target of 35%.\nJeffries flagged that 2024 has been a tremendous year for Web Builders. The three public vendors in this space have outperformed the market year-to-date.\nProfitability and returning capital have been the pillars of outperformance. However, with likely most stock tendered to the revised Squarespace, Inc (NYSE:SQSP) deal and such year-to-date solid performance, the analyst noted it’s an appropriate time to revisit his thesis on GoDaddy and Wix.\nThe analyst noted that both names are sitting today at ~$160, ~17 times calendar 2025 free cash flow, and demonstrating accelerating Bookings growth year-to-date. Looking to 2025, he noted the differentiator for stock performance will be the potential for improving growth and the horizon for continued margin improvements. Thus, he noted a more compelling ownership thesis for Wix at current levels.\nJeffries projected third-quarter revenue of $444.4 million and EPS of $1.70.\nSince 2021, customer growth has been challenged in the Web Builders space, growing below trend as the industry digested much of the pull forward from COVID and stimulus years and a challenging economic backdrop in recent quarters, the analyst noted. However, he said that growth has not fallen as precipitously as customer growth due to pricing, which has ramped up in response to lower subscriber growth.\nLooking ahead to 2025, Jeffries noted investors will be evaluating how much growth could come back to these models under normalized economic conditions. Under that scenario, the analyst noted Wix is the clear favorite, seen as the higher medium-term and terminal grower.\nPrice Action: WIX stock is up 2.45% at $164.58 at the last check Monday.\nPhoto via Company\nLatest Ratings for WIX\n\n\n\nDate\nFirm\nAction\nFrom\nTo\n\n\n\n\nMar 2022\nAtlantic Equities\nDowngrades\nOverweight\nNeutral\n\n\nFeb 2022\nRBC Capital\nMaintains\n\nSector Perform\n\n\nFeb 2022\nJMP Securities\nMaintains\n\nMarket Outperform\n\n\n\n View More Analyst Ratings for WIX \n View the Latest Analyst Ratings \nUNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets.\nGet the latest stock analysis from Benzinga?\n\nThis article Wix Is Set for Growth With Expanding Margins and Cash Flow, Analyst Upgrades Stock originally appeared on Benzinga.com\n© 2024 Benzinga.com. Benzinga does not provide investment advice. 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