The S&P/ASX 200 Index (ASX: XJO) definitely didn't have as good a month in February as it did in January. But even so, the ASX 200 still remains up a healthy 5.5% in 2023 so far. But one ASX 200 tech stock has beaten the Index's solid return six-fold over the year so far.
That would be the WiseTech Global Ltd (ASX: WTC) share price.
WiseTech shares have been on fire in 2023. The logistics software company was only going for $49.17 at the start of January, a good 30% less than the $63.96 a share it is asking today.
What's more, today has seen a new record share price for WiseTech. This morning, WiseTech shares climbed as high as $64.86 each. Not only is that a new 52-week high for this ASX 200 tech share, but a new, all-time record high to boot.
So what's behind WiseTech's latest high and the rather epic share price run it has gone on over 2023 thus far? Well, it could come down to a couple of reasons.
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Why has this ASX 200 tech stock rocketed 30% in 2023 to a new record high?
The first (and probably most important) is WiseTech's continuing growth. It was only last month that WiseTech gave investors its latest report card.
And this half-year earnings report contained some pretty impressive figures for shareholders to digest. For the six months ending 31 December 2022, the company reported revenues of $378.2 million, up a healthy 35% over the previous period.
Earnings before interest, tax, depreciation and amortisation (EBITDA) were up slightly more, rising by 36% to $187.3 million. Underlying net profits after tax (NPAT) came in 40% higher than 2021's numbers at $108.5 million.
All of this helped WiseTech to raise its 2023 interim dividend by a pleasing 39% to 6.6 cents per share.
So with these kinds of numbers on display, it's perhaps no surprise that investors have been bidding up WiseTech shares over 2023 thus far.
ASX broker named WiseTech as a buy
But we've also seen ASX brokers give this ASX 200 tech share some love. Last month, we covered broker Morgan Stanley's rating on the WiseTech share price. Morgan Stanley gave the company an overweight rating, as well as a 12-month share price target of $64 – almost exactly where the shares are today.
The broker continues to see WiseTech's future as bright, so this buy rating last month could have helped investors push the WiseTech share price to the levels we are currently seeing.
So it's likely that a combination of ASX broker love and the stellar earnings report WiseTech delivered last month are at least partly responsible for the stellar run the WiseTech share price has been on this year, and the record high prices we have seen for the company today.
No doubt investors will be very pleased with this news.
At the current WiseTech Global share price, this ASX 200 tech share has a market capitalisation of $21.12 billion, with a dividend yield of 0.2%.
