Wix.com raised at Baird as product becomes ’increasingly compelling’

Investing.com -- Baird lifted its rating for shares of Wix (NASDAQ:WIX).com to Outperform in a note Friday, lowering its price target for the stock to $190 from $215 a share.

The firm pointed to improvements to the company’s platform, more reasonable investor expectations, and favorable long-term fundamentals.

“We are adopting a constructive stance on WIX because: 1) the product is becoming increasingly compelling, 2) expectations now seem more reasonable post-1Q print, and 3) the long-term drivers of the investment case are attractive,” Baird analysts wrote in a note.

The upgrade comes after a year-to-date decline in the stock, with shares down 28% versus a 1% decline in the S&P 500. 

Baird said the recent sell-off has “provided an attractive entry point into a high-quality business that continues to enhance its offering.”

“The long-term drivers are attractive,” stated Baird. “Beyond the puts/takes of the near term, we have also grown increasingly constructive on the long-term drivers of the investment case here.”

Baird emphasized that the company’s improving product is a key part of its positive outlook.

Analysts said Wix’s offering is “increasingly compelling,” supporting confidence in the platform’s competitive positioning.

“Over the past few months, WIX has released a variety of updates across its product portfolio. We are growing increasingly optimistic about the potential for these changes to improve conversion, retention, and monetization over time,” the firm explained.