Wix.com's Cost-Cutting Measures May Bolster Shareholder Value, Analyst Says

Wix.com Ltd. WIX shareholders may benefit from the website-building platform's cost-cutting measures, according to Oppenheimer.

The Analyst: Ken Wong upgraded the rating for Wix.com to Outperform, while keeping the price target unchanged at $100.

The Thesis: Starboard has bought a stake of around 9% in the company, saying it believes the shares are "undervalued" and represent an "attractive investment opportunity," Wong said.

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“Management has already pivoted toward balanced growth, projecting to deliver 20% margins by FY25, with LT targets trending to ~30%,” the analyst wrote. “Our conversations indicate that investors are generally constructive on Wix's more balanced approach, but view activist involvement as a positive catalyst to potentially accelerate efforts to streamline operations, and hold management accountable to staying the course (equally important)."

WIX Price Action: Shares of Wix.com had risen by 1.24% to $78.29 at the time of publication Thursday.

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Posted In: Analyst ColorUpgradesAnalyst RatingsKen WongOppenheimer
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