Wix.com target raised to $90 at Needham; Remains Top Pick for FY18
Needham raises their WIX tgt to $90 from $70. Importantly, firm believes the FY18 growth guidance is a base case with numerous growth levers, such as Artificial Design Intelligence (ADI) geographic roll-out, WixCode, and DeviantArt, that could drive revenue growth towards 40% y/y. Firm is incrementally more positive on WixCode given the early adoption and large addressable market, which could be a key upside rev driver in FY18. While Wix should remain an aggressive marketer, they also expect the company to continue to gain operating leverage, nearly doubling free cash flow in FY18 to ~$100M