WIX - Wix.com slips even as Credit Suisse starts coverage with outperform rating

Wix.com ( NASDAQ: WIX ) shares slipped 1% in premarket trading on Friday even as investment firm Credit Suisse started coverage on the web development company with an outperform rating.

Analyst Christopher Zhang, who also put a $105 per-share price target on Wix.com ( WIX ) shares, noted the company is a "leading" content management system company that has a number of other areas where it can see growth, including the intersection of software and payments.

"After heavy investments in the past [roughly] 4 years, we believe Wix is on the cusp of regaining and expanding its EBIT & FCF margins over the coming years with a strong commitment to cost discipline, which should support its share price despite the macro weakness," Zhang wrote in a note to clients.

The analyst added that Wix.com ( WIX ) is still likely to continue growing in the CMS space due to the low penetration of software-as-a-service in the space, as well as the prevalence of fragmented web and commerce tools.

Additionally, Wix.com ( WIX ) could also see further gains, including stronger revenue growth and margin expansion if its Commerce and Partners business continues to take share from competitors, including Google ( GOOG ) ( GOOGL ) Workspace and other apps.

Earlier this week, it was disclosed that hedge fund Starboard Value had trimmed its position in Wix.com ( WIX ), while making several other changes to its portfolio .

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