The WiseTech Global Ltd (ASX: WTC) share price has been one of the best performers on the S&P/ASX 200 Index (ASX: XJO) in 2021.
Since the start of the year, the logistics solutions company's shares have risen an incredible 66%.
Image source: Getty Images
Why is the WiseTech Global share price rocketing higher?
Investors have been bidding the WiseTech Global share price higher this year following a very impressive performance in FY 2021.
For the 12 months ended 30 June, the company reported an 18% increase in revenue to $507.5 million and a 63% jump in EBITDA to $206.7 million. The latter was well ahead of its EBITDA guidance of $165 million to $190 million.
Also giving the company's shares a lift was its guidance for the year ahead. Management advised that it is expecting further strong growth in FY 2022 and has provided guidance for EBITDA growth of 26% to 38%.
Is too late to invest?
Unfortunately, one leading broker doesn't see enough value in the WiseTech Global share price at present to recommend it as a buy.
According to a recent note out of Bell Potter, its analysts have put a hold rating and $47.50 price target on the company's shares.
Based on the current WiseTech Global share price of $50.58, this implies potential downside of 6% over the next 12 months.
Bell Potter commented: "We have upgraded our FY22 and FY23 EBITDA forecasts by 23% and 26%. We now forecast FY22 EBITDA of $294.3m which is above the top end of the $260-285m guidance range while our FY22 revenue forecast of $622.8m is within the $600-635m guidance range. Note we forecast the EBITDA margin to increase from 40.7% in FY21 to 47.3% in FY22."
"The net result is a 51% increase in our PT to $47.50 which is a modest premium to the share price [at the time] so we maintain our HOLD recommendation," it added.
In light of this, investors may want to hold out for a better entry point before considering an investment.
