Here's why the WiseTech Global (ASX:WTC) share price jumped 31% in 2020

The WiseTech Global Ltd (ASX:WTC) share price was on form in 2020 despite a number of challenges. Here's why it stormed 31% higher…

The WiseTech Global Ltd (ASX: WTC) share price was a very strong performer in 2020 despite facing a number of challenges.

Over the 12 months, the logistics solutions company's shares recorded an impressive gain of 31%.

Why did the WiseTech Global share price outperform in 2020?

Investors were buying the company's shares in 2020 after its strong growth offset concerns over the pandemic, heavy insider selling, and a short seller attack.

For the 12 months ended 30 June, WiseTech Global overcame COVID-19 headwinds to deliver a 23% increase in revenue to $429.4 million and a 17% lift in earnings before interest, taxes, depreciation and amortisation (EBITDA) to $126.7 million.

Management advised that this was driven by growth from both its CargoWise platform and newly acquired businesses.

The CargoWise platform delivered a 20% increase in revenue to $263 million, whereas its newly acquired businesses generated a 29% lift in revenue to $166.4 million.

What about FY 2021 and beyond?

Pleasingly, the company is expecting its growth to continue in FY 2021.

Management provided and recently reaffirmed its FY 2021 revenue guidance of $470 million to $510 million and EBITDA guidance of $155 million to $180 million. This represents revenue growth in the range of 9% to 19% and EBITDA growth of 22% to 42%.

And looking beyond FY 2021, the company remains very positive on its long term prospects. This appears to have gone down well with the market.

At its annual general meeting, CEO Richard White commented: "Looking ahead, with penetration of automated, truly global logistics solutions still in early stages, WiseTech's opportunity for growth is vast. We believe CargoWise is the market-leading platform for global logistics execution and is well-positioned to strengthen its position in the global market over the near-term and long-term."

Can the WiseTech Global share price go higher?

According to a note out of Citi from last month, the WiseTech Global share price may now have peaked.

It has a sell rating and $27.70 price target on its shares. This compares to the latest WiseTech Global share price of $28.91.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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