WiseTech Global Ltd (ASX: WTC) shares just capped off a remarkable year.
How remarkable?
Well in 2024, shares in the S&P/ASX 200 Index (ASX: XJO) logistics software solutions company roared 60.6% higher. Or more than eight times the 7.5% gains posted by the ASX 200 over the year.
Atop those capital gains, WiseTech shares also trade on a slender, fully franked 0.1% trailing dividend yield.
And 2025 is off to a strong start for the ASX tech stock, whose CargoWise platform is used by many of the world's biggest logistics companies.
At yesterday's closing price of $127.05, the stock is up 4.9% in these early days of the new year.
Below, we look at four reasons why Shaw and Partners' Jed Richards believes WiseTech can keep on outperforming in 2025 (courtesy of The Bull).
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WiseTech shares gaining global recognition
The first reason Richards is bullish on WiseTech shares for 2025 is the company's growing recognition and expanding footprint among global logistics organisations.
Richards noted that the company's core CargoWise platform helps its customers to execute "highly complex" logistics transactions while managing operations.
"This company's software is gaining a reputation as the best in the industry," Richards said.
At its FY 2024 results, released on 21 August, the company reported that 52 large global freight operators were using CargoWise. And WiseTech's customers included more than half of the top 25 freight forwarders on Earth.
Revenue, profit boosts
The company's CargoWise revenue increased by 33% from FY 2023 to $880 million, driving a 28% year-on-year boost in total revenue, which came out to $1.04 billion.
On the profit front, the company lifted FY 2024 statutory net profit after tax (NPAT) by 24%, with an underlying NPAT of $284 million, up 15% year on year.
These strong growth metrics are the second reason Richards expects WiseTech shares to keep marching higher in 2025.
"Growing revenue and net profit reflect WiseTech's operational efficiency and successful partnerships with major customers," he said.
The third reason Richards has an optimistic outlook for the ASX 200 tech stock is the potential on offer from the rapid evolution of artificial intelligence.
"WiseTech's positive momentum and its capacity to introduce artificial intelligence into its products presents strong growth potential," he said.
And the fourth reason Richards expects a strong year from WiseTech shares in 2025 is that the company has weathered a changing of the guard. This followed the ructions in 2024 involving alleged inappropriate behaviours by co-founder and former CEO Richard White.
White announced that he would be stepping down from those positions on 24 October. But he pleased investors by assuring that he would stay on in a high-level consulting role.
Andrew Cartledge has since taken over as interim CEO.
"Recent changes in top-level management will also be the catalyst for a strong year ahead," Richards said about the expected impact on WiseTech shares.
