Wix.com upgraded to Buy at Benchmark on profitability inflection

Benchmark upgraded Wix.com to Buy from Hold with a $120 price target. GAAP profitability in Q2 “marks an inflection point for the shares” and lends credence to the company’s ability to realize a 25% free cash flow margin in 2025, the analyst tells investors. A shift in management’s focus from pursuing “unsustainable above-average industry growth” to “a sustainable balance of revenue growth and profitability” provides the firm confidence that Wix can reach and sustain GAAP profitability, the analyst added.