BofA Securities downgrades Wix.com to Underperform and cuts price target
Bank of America Securities lowered Wix.com’s rating from Buy to Underperform and reduced its price target to $68 from $75. The downgrade cited a slowdown in the Partners segment, prompting a cut to the fourth‑quarter revenue growth estimate to 12% from 14% and the EBITDA margin forecast to 15% from 18%. Wix reported third‑quarter revenue of about $570 million, up 12.9% year‑over‑year, but margins fell short of expectations. The news sent the stock down roughly 5.5% in pre‑market trading.
Why it matters
The downgrade and lower target may pressure the share price, as indicated by the 5.5% pre‑market decline. BofA’s reduced forecasts suggest weaker near‑term growth, which could affect investor sentiment.
Key facts
- 1BofA Securities downgraded Wix.com to Underperform from Buy. investing.com
- 2The price target was cut to $68 from $75. investing.com
- 3Fourth‑quarter revenue growth estimate was lowered to 12% from 14%. investing.com
- 4EBITDA margin forecast was reduced to 15% from 18%. investing.com
- 5Q3 revenue was $570 million. investing.com
- 6Q3 revenue was $570.2 million, up 12.9% YoY. investing.com
Summary written by AlphAI AI Desk from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.