European stocks close lower amid AI bubble worries; U.K. GDP contracts
Investing.com - Cantor Fitzgerald raised its price target on Wix.com (NASDAQ:WIX) to $140 from $135 while maintaining an Overweight rating on the website building platform. Wix shares currently trade at $105.15, significantly below their 52-week high of $247.11, having declined over 50% year-to-date.
The research firm expects Wix’s core business to generate approximately $800 million in free cash flow (FCF) by fiscal year 2027, up from over $640 million in fiscal year 2025, driven by healthy top-line growth and steady margins despite some incremental investments. InvestingPro data shows Wix currently offers a strong free cash flow yield of 10%, with the company generating $550.66 million in levered free cash flow over the last twelve months.
Cantor Fitzgerald noted that Wix’s Base44 segment will likely see increased FCF drag in the first half due to inference costs and brand marketing, but anticipates improvements in the second half from better conversion rates and marketing leverage.
The firm acknowledged that the delay of Wix’s new Self Create product launch to early 2026 has raised execution concerns, but believes the integration of vibe coding experiences into the website builder should drive meaningful conversion improvements similar to gains from the company’s ADI launch in 2016.
At current levels, Wix shares are trading at 7 times core FY27 estimated FCF per share, which Cantor Fitzgerald views as well below the company’s long-term average. While Wix trades at a P/E ratio of 45.16, InvestingPro analysis indicates the stock appears undervalued based on its Fair Value model. Analysts maintain a Strong Buy consensus with a high target of $210, suggesting significant upside potential. For deeper insights into Wix’s financials and more exclusive ProTips, check out the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Wix.com has experienced several adjustments in analyst price targets following its latest financial developments. Cantor Fitzgerald lowered its price target to $135 from $160 while maintaining an Overweight rating, citing increased spending on compute resources and marketing for its Base44 offering. Despite exceeding analyst expectations for third-quarter bookings and revenue by 1%, Wix.com’s profit fell short by 7% due to elevated expenses. RBC Capital also reduced its price target to $190 from $210, pointing to margin pressure from the company’s vibe coding initiatives, although bookings growth exceeded expectations with revised upward guidance for the fourth quarter.
Benchmark decreased its price target to $185 from $230, highlighting increased marketing and AI computing costs that complicate the company’s near-term leverage outlook. UBS adjusted its price target to $170 from $200, maintaining a Buy rating and noting a more than 10% estimated adjusted free cash flow yield for 2026, with expectations for high-teens growth in 2027. CFRA lowered its price target to $140 from $200, expecting slower revenue growth through 2026 but anticipating an increase in premium subscriptions. These developments reflect a range of strategic adjustments and financial forecasts influencing Wix.com’s market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.