On Wednesday, Barclays (LON:BARC) updated its stance on Wix.com (NASDAQ:WIX), a leading cloud-based development platform, by increasing the stock's price target from $184.00 to $236.00. The firm maintained its Overweight rating on the shares.
The adjustment follows Wix.com's recent financial report, which Barclays described as another solid performance. The analyst noted that while the growth in the self-creator segment was less than anticipated, other areas of the business, including partner and business solutions, have accelerated. This growth comes despite challenging comparisons from previous strong performances.
Barclays also highlighted Wix.com's rapidly improving free cash flow (FCF) margin, which is nearing the 30% mark. The analyst's remarks underscore the company's financial health and efficiency in generating cash from its operations.
Furthermore, the analyst pointed out that Wix.com is on track to reach $500 million in free cash flow in 2024, achieving this milestone a year earlier than the company's previous long-term guidance had suggested.
In summary, Barclays reaffirmed its Overweight rating on Wix.com, signaling confidence in the company's continued growth and financial progress. The raised price target reflects the firm's positive outlook on the stock's future performance.
In other recent news, Wix.com Ltd. has reported robust third-quarter results, surpassing analyst expectations. The company recorded an adjusted earnings per share of $1.50, outpacing the anticipated $1.44. Additionally, revenue saw a 13% year-over-year increase, reaching $444.7 million, slightly above the consensus of $443.97 million.
This performance was largely driven by a 16% YoY surge in bookings growth, attributable to the company's Studio product, AI innovations, and robust commerce activity. Morgan Stanley (NYSE:MS) maintained an Equalweight rating on Wix.com, noting a strong outlook for fiscal year 2025 based on the company's recent performance and raised guidance for the fourth quarter. The firm anticipates an 18% billings exit rate for fiscal year 2024, suggesting potential for higher revenue growth in fiscal year 2025.
InvestingPro Insights
Wix.com's recent performance aligns with several key metrics and insights from InvestingPro. The company's revenue growth of 12.85% over the last twelve months as of Q2 2024 supports Barclays' observation of solid performance across various business segments. Moreover, the EBITDA growth of 205.63% during the same period underscores the company's improving profitability, which is consistent with the analyst's remarks on Wix's rapidly improving free cash flow margin.
InvestingPro Tips highlight that Wix.com has been profitable over the last twelve months and that net income is expected to grow this year. These tips corroborate Barclays' positive outlook on the company's financial health and future performance. Additionally, the fact that Wix is trading near its 52-week high, with a one-year price total return of 87.15%, reflects the market's confidence in the company's growth trajectory.
For investors seeking a deeper understanding of Wix.com's potential, InvestingPro offers 12 additional tips, providing a comprehensive analysis of the company's financial position and market performance.
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