The WiseTech Global Ltd (ASX: WTC) share price has not been immune to the tech selloff in 2022.
Since the start of the year, the logistic solutions technology company's shares have dropped 32% to $40.66.
This is broadly in line with the S&P ASX All Technology index, which is down 35% year to date.
Is the WiseTech share price good value now?
The team at Goldman Sachs have been looking at the tech sector and have given their verdict on the WiseTech share price.
And while the broker isn't recommending it as a buy just yet, it does see scope for its shares to push higher.
According to the note, the broker has retained its neutral rating and cut its price target by 15% to $45.00. Based on the current WiseTech share price, this implies potential upside of almost 11% for investors.
What did the broker say?
Goldman notes that global trade conditions are weakening and highlights the impact this could have on its CargoWise (CW) business. And while it expects price increases to offset some of this, it isn't enough to stop it from lowering its estimates a touch.
One positive, though, is that its CW revenues could receive a boost if one of its customers, DSV Panalpina, makes a major acquisition.
The broker explained:
We note weakening global trade conditions, which WTC is exposed to with c.50% of CW revenues on a transaction basis. Further potential M&A could support ongoing large customer wins. We note recent press reports suggesting DSV Panalpina (CW customer) reportedly interested in acquiring Top 25 LGFF CH Robinson Fowarding (non-CW).
Overall we revise revenues lower on weaker FY23/24E volume growth contributions, partially offset by higher pricing expectations (given pricing power, and market inflation), while update for spot FX (which drives overall EBITDA upgrades of +0-1%). Our 12m TP is -15% to A$45.
