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Research Alert: CFRA Lowers Opinion On Shares Of Wix.com To Hold From Buy

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lowered our rating on Wix to Hold from Buy and cut our 12-month target price from USD105 to USD57, based on a lower 2026 P/E of 11.1x, representing 2 standard deviations below the three-year historical mean of 24.7x. The lower valuation reflects increasing uncertainty surrounding profitability recovery as Wix enters a significantly heavier AI investment cycle, with rising AI infrastructure and inference costs. We maintain our 2026 revenue forecast at USD2.3B (+15% Y/Y) and 2027's at USD2.6B (+15% Y/Y), reflecting continued momentum from Base44, improving monetization and conversion trends from Wix Harmony as well as expansion in AI-powered online creation offerings. We cut our 2026 EPS forecast from USD8.38 to USD5.11 and 2027's from USD9.64 to USD5.88 to reflect rising AI infrastructure costs. We also expect significantly higher sales and marketing spending as Wix continues to scale Base44 amid expanding AI-related initiatives.

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