- Starboard's new 9% stake in web page designer Wix.com ( WIX) may be intended to push for industry consolidation, according to a Bank of America analyst.
- Starboard may be advocating for consolidation in the industry to remove costs and improve marketing, BofA analyst Nat Schindler wrote in a note on Monday. He believes that Starboard is likely focused on margin improvements and revenue acceleration for Wix.
- Schindler highlighted that Starboard also has a 5% stake in Wix competitor GoDaddy ( GDDY ), which was first reported in December.
- "With multiple companies offering similar offerings, including Wix, Squarespace, GoDaddy, and Square (Weebly), Starboard could be eyeing industry consolidation in order to remove excess costs and improve marketing efficiency, particularly given Starboard’s 5% stake in GoDaddy," Schindler, who as a buy rating with a $130 price target on Wix, wrote in a note.
- On Monday Wix ( NASDAQ: WIX ) jumped 16% on the Starboard news and Truist said the activist stake could be an "additional catalyst" for the stock.
- Also see, Why did Squarespace stock pop Monday? Amid activist stake in competitor Wix.com.
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Starboard Wix stake may be about industry consolidation - analyst