Wix.com (WIX) shares have been a major disappointment for investors since the start of 2026, but a senior Citi analyst believes they will recover in the second half. In a research note this morning, Jamesmichael Sherman-Lewis reiterated a "Neutral" rating on WIX but raised his price target to $72, indicating potential upside of nearly 10% from here. His bullish call brings a much-needed reprieve to WIX stock, which is currently down about 34% year-to-date.
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Sherman-Lewis expects the launch of WIX's new Base1 model, together with ongoing AI-related cost optimizations, to push Base44's gross margin to roughly 60% during the second half of 2026. Stronger unit economics will equip Wix.com Ltd with greater flexibility to invest in Base44 while maintaining higher returns on those investments. The analyst believes this improving cost structure will drive WIX shares higher over the next 12 months.
Citi also sees potential for Wix's bookings growth to regain momentum as the company shifts more of its business mix toward Base44. Sherman-Lewis is increasingly confident that improving Base44 economics can support a renewed growth cycle, which makes its current price-to-sales (P/S) multiple of less than 2x look attractive. Note that WIX closed its fiscal Q2 with total annual recurring revenue (ARR) up 15% year-over-year to $1.96 billion.
It's also worth mentioning that Wix stock has historically ended both August and September in the green, a seasonal pattern that makes it even more compelling as a long-term holding. Despite the raised price target, Citi remains one of the more conservative firms on WIX shares for the remainder of 2026. According to Barchart, the consensus rating on Wix.com sits at "Moderate Buy," with the mean price target of $79 indicating potential upside of roughly 20% from current levels.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
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