Wix.com (NASDAQ: WIX) is a cloud-based web development platform allows users to create mobile responsive websites using a simple drag and drop toolkit as well as web hosting and design services.
Customers raved about the easy of use of the product and the stock was a Wall Street darling during the covid lockdown and peaked in March 2021 at $342 per share. Over the next year, the stock plummeted 80% but has since recovered some ground, currently trading around $165.
Is Wix a Buy?
According to 20 Wall Street analysts, Wix.com has a consensus rating of “Moderate Buy,” with 50% recommending it as a buy over the past 3 months. The 12-month price target average is $185, indicating a 12% upside. On the high end, Benchmark Company’s Mark Zgutowicz has set a high price target of $210.
Wall Street’s still bullish on Wix even after the 120% surge over the past 12 months. After reporting 1st quarter earnings, the stock jumped 20% alone and hit its new 52-week high. The story here was the firms ability to sell more to customers without spending more to do so. And any software company that can effectively grow margins will have a healthy amount of free cash flow (just see what Microsoft did).
Going back to the Wall Street’s bullish sentiment, Wix was expecting $400 million in cash flow this year and after the first quarter earnings report, they are now expecting $450 million. Wix grew its top line 13% year-over-year and will likely beat that growth this year.
Given the positive cash increases and top line growth, its not wonder Wix is considered a “Moderate Buy“.
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
