Wix.com (WIX) PT Lowered to $58 at UBS on Guidance Update

UBS analyst Chris Zhang lowered the price target on Wix.com (NASDAQ: WIX) to $58.00 (from $68.00) while maintaining a Neutral rating.

The analyst commented, "Wix updated FY 2026 guidance in response to the recent RIF (~20% of workforce) as a result of a slowdown in the business (~1/3rd of which was driven by softness in the Partners business with remaining ~2/3rds being within Wix's control in order to seek more profitable growth at lower growth rate) in the second half of May / early June. Wix is now expecting bookings growth in the ~low-teens (vs. ~mid-teens prior), full year and Q2 revenue growth in the ~low- to mid-teens (vs. ~mid-teens prior), while raising full year FCF (ex. acquisition and restructuring costs) expectations by ~$20mm to ~$420mm (margin unchanged at ~high-teens). Q2 is expected to be the FCF trough for the year, with management expecting it to be significantly lower than Q1 given lower bookings materialization immediately without benefit from cost savings, with FCF expected to improve through Q3/Q4 as cost savings kick in (spread relatively evenly in 2H). Wix expects the full year headwind to be ~$50mm on bookings and ~$25mm on revenue (with an impact in Q2 and a slightly more pronounced impact on Q3/Q4 bookings and revenue) and full year expense savings of ~$70mm with run rate of ~$150mm. We update our model to reflect the guidance update and reduced assumption for gross margin estimates for Base44."

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