The WiseTech Global Ltd (ASX: WTC) share price has rallied more than 60% this year, having recovered sharply from a rapid sell-off last month.
With the recent ups and downs, analysts and investors alike were questioning the software provider's future.
Despite the turbulence, brokers still see a path for the WiseTech share price to climb towards the $200 per share club. Let's take a closer look.
Analysts are bullish on the WiseTech share price
According to CommSec, consensus rates the WiseTech share price a buy, with nine of seventeen analysts sitting on the bullish side of the fence.
Morgan Stanley has increased its price target for WiseTech to $200 in the upside case.
According to The Australian Financial Review, the investment bank has set a $160 price target in its base case scenario, reflecting optimism about the company's long-term potential.
Analyst Andrew McLeod said the company was well positioned on the fundamental side. Per the AFR:
We believe the key drivers of the next level of intrinsic value are in place.
If the WiseTech share price does surge to $200 apiece, it will mark a 60% gain from the company's stock price at publication.
Goldman Sachs also rates the stock a buy with a price target of $138, which is not too far off Morgan Stanley's base scenario.
Goldman expects double-digit revenue growth from the company, forecasting top-line growth of 21% in FY26 and 28% the next year.
Finally, Macquarie also upgraded WiseTech to a buy in a note to clients this week.
What's driving WiseTech?
WiseTech shares have rallied as the company has exhibited growth in its financials and operations in recent years.
Earnings of 14 cents per share in 2018 have grown every year to reach 81 cents per share in FY24, a compounding growth rate of 34% per year.
From FY20 to FY24, the earnings growth rate averaged 50% per year.
But the recent volatility was caused by two key events. First, the exit of founder Richard White as CEO. Second, the lowering of its FY25 guidance.
Although WiseTech's founder stepped down as CEO and director, he remains actively involved in product development.
But the delayed launch of WiseTech's new Container Transport Optimisation platform has pushed anticipated revenues downstream. A launch is expected in H2 FY25.
As markets are forward-looking, how the business performs from here is critical.
UBS forecasts the company's net profit will climb from $351 million in FY25 to $1.2 billion by FY29, a compounding growth rate of 36% per year.
Forecasts like these might explain why the WiseTech share price trades at more than 150 times trailing earnings.
Foolish takeout
WiseTech doesn't come cheap. But its long-term growth prospects are hard to ignore, according to experts.
The company holds a leading position in its market segment, and governance issues look to be settled. Better yet, its founder is still around, having led the company on its immense growth since inception.
In the last 12 months, the stock is up 91%.
