Wix.com Gets Target Boost As Analyst Reverses From Value To Growth Software Stocks

Piper Sandler analyst Clarke Jeffries upgrades Wix.com Ltd WIX from Neutral to Overweight, raising the price target from $99 to $120.
The analyst believes growth estimates have bottomed, even if net new ARR in 2023 is 50% below 2019 levels, revenue would still be within guidance.
With a cash flow breakeven known for Partners (25% of the mix), the remainder of the $215 million+ annualized cost savings plan should fall to Self-Creator (SC). Even with <15% growth in SC, that improvement in OpEx has the analyst confident in over $425 million of FCF in CY25.
Post-4Q22, the analyst believes growth headwinds for post-COVID subscription cohorts are closing, price increases fuel growth without sizable offsetting churn, and the profitability delta between the top & bottom players in the space will likely compress to a narrower range than ever before.
The analyst flipped from value to growth across his digital presence coverage.
Piper Sandler downgrades GoDaddy Inc GDDY from Overweight to Neutral and lowers the price target from $100 to $88.
Compression to MSD growth has jeopardized the company's ability to produce $8+ FCF/share by 2024, limiting the upside.
The analyst believes that only significant bookings or profitability inflection in the coming quarters could prevent risk for further top-line deceleration, potentially below MSD.
Price Action: WIX shares traded higher by 6.92% at $94.50 on the last check Tuesday.

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