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KeyBanc Upgrades Wix On Digital Acceleration Tailwinds

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KeyBanc Upgrades Wix On Digital Acceleration Tailwinds

Online content and commerce initiatives are likely to boost the adoption and reach of Wix.Com Ltd’s (NASDAQ: WIX) flagship platform, according to KeyBanc Capital Markets.

The Wix Analyst: Josh Beck upgraded Wix.com from Sector Weight to Overweight, while establishing a price target of $250.

The Wix Thesis: KeyBanc’s proprietary Key First Look Data indicates a material year-on-year acceleration in collection growth in the second quarter, as individuals and businesses increase and sustain a more significant online presence, Beck said in the note.

This tailwind may prove structural and propel Wix.com’s revenue. The analyst said the company may witness positive user retention, with freemium conversions outweighing subscription churn.

Conversion from new users may also increase, with more people and companies desiring an online content and commerce presence, Beck mentioned.

He raised the revenue estimates for 2020 and 2021 above the Street’s projections to $970 million and $1.2 billion, respectively, while adding that there is “room for further upside as increased category awareness could enhance commerce and up-market initiatives.”

WIX Price Action: Shares of Wix.com had appreciated more than 3% to $223 at the time of publication Tuesday.

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Latest Ratings for WIX

DateFirmActionFromTo
Aug 2020JMP SecuritiesMaintainsOutperform
Aug 2020Raymond JamesMaintainsOutperform
Aug 2020NeedhamMaintainsBuy

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