Israeli institutions see Wix as acquisition target

Wix Photo: PR

According to an Oppenheimer survey of Israeli investment institutions, the israeli DIY website builder could be the next acquisition target.

Following the acquisition of Mobileye(NYSE: MBLY), DIY website company Wix.com Ltd. (Nasdaq: WIX) could be the next acquisition target among Israeli companies, according to a survey conducted by Oppenheimer Israel investment banks among local investment concerns. 32% of the survey respondents said that Wix was likely to be sold, followed by Gilat Satellite Networks Ltd. (Nasdaq: GILT; TASE: GILT) (8%) and Radware Ltd. (Nasdaq:RDWR) (7%).

The survey was conducted in advance of Oppenheimer's 18th annual conference in Israel. Among other things, the survey shows that most of the Israeli investment institutions are optimistic about continuation of the positive trend in the global markets. "The global stock markets trend has been up for the past eight years, and became stronger over the past year," Oppenheimer reports. "The S&P 500 index is still breaking records, and has risen 7% this year. According to the wisdom of the crowd, the positive trend will persist in the second half of the year, with 54% of the respondents expected a rise of over 10%. in 2017." 17% of the survey respondents expect a rise of up to 10%, while 30% of those questioned expressed pessimism, predicting a drop in the second half of the year that will put the S&P 500 index down on the year.

64% of the survey respondents believe that shares will generate the best return in 2017. Oppenheimer notes that since the survey was launched several years ago, the respondents have consistently favored the stock market, even in years in which its performance was poor (in 2015, for example). At the same time, Oppenheimer said that in comparison with the previous surveys, the proportion of investors expecting outstanding bond yields dropped to only 6%. They attributed this to a dramatic slide in yields limiting the potential rise in this instrument.

On the question of which share will have the best return by May 2018, the respondents cited two winners, each with 18% of the sample: Wix and solar energy company SolarEdge Technologies Inc.(Nasdaq:SEDG). Oppenheimer mentions that Wix led the rises among Israel shares in recent years (300%), while SolarEdge led the falls with 50%. 13% selected Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA). It appears that following the steep decline in the Teva share price in recent months, there are those who believe that the trend will change. Other survey leaders in this category were Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE: TSEM) (marketed as Tower-Jazz) (11%) and Radware (9%).

Published by Globes [online], Israel Business News - www.globes-online.com - on May 15, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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Wix Photo: PR
Wix Photo: PR
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