The ASX tech share WiseTech Global Ltd (ASX: WTC) jumped yesterday after reporting its result and has surged another 9% today. It has already been a great year for the company, with a rise of 59% in 2024 to date, as shown on the chart below.
This company is benefiting from the increasingly complex nature of the global logistics space. Its software is key for many of the world's biggest logistics businesses.
Its customer base includes over 17,000 of the world's logistics companies in 183 countries, including 46 of the top 50 global third-party logistics providers and 25 of the 25 largest global freight forwarders.
The market may have enjoyed the result, but what do analysts think of the stock now?
Image source: Getty Images
Earnings recap
As a reminder, WiseTech reported that total revenue increased 28% to $1.04 billion. It reported that 97% of its revenue is recurring, up from 96% in FY23.
FY24 earnings before interest, tax, depreciation and amortisation (EBITDA) increased 28% to $495.6 million, with the EBITDA margin improving 40 basis points to 48%, up from 47%.
Underlying net profit after tax (NPAT) grew 15% to $283.5 million, underlying earnings per share (EPS) increased 13% to 85.7 cents, and statutory NPAT increased 24% to $262.8 million.
WiseTech's free cash flow grew by 14% to $333 million, and the final dividend per share hiked by 10% to 9.2 cents.
In FY25, the business is expecting revenue to grow by another 25% to 30%, to between $1.3 billion and $1.35 billion. EBITDA is expected to increase by another 33% to 41%, to between $660 million and $700 million.
Analyst ratings on WiseTech shares
According to reporting by The Australian, a number of brokers have increased their price targets on the business. A price target is where brokers think the share price will be in 12 months.
The newspaper reported that:
- Morgan Stanley increased its price target by 26% to $120
- Macquarie raised its price target by 22% to $100
- JPMorgan raised its rating to overweight, with a price target of $123
- Goldman Sachs raised its target price to $104
- CSLA decreased its rating to hold, with a $117 target
With the WiseTech share price currently trading at $122.06, this collection of brokers is suggesting the business could fall by up to 18.07% and rise by up to 0.77%.
Clearly, investors seem to think that WiseTech is near its valuation peak, for now. But if profit keeps rising, then it could grow into the valuation.
