WiseTech Global Ltd (ASX: WTC) shares could be in the buy zone.
That's the view of analysts at Goldman Sachs, which have just tipped the ASX 200 tech stock as a top buy.
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What is the broker saying about this ASX 200 tech stock?
Goldman is expecting another strong result from the logistics solutions company next week when it releases its half year results.
According to the note, the broker is forecasting a result ahead of the Visual Alpha consensus estimate. It said:
This will be WiseTech's first result reported in USD functional currency. We expect a strong set of 1H25 results driven by Cargowise revenue growth and efficient cost management. Overall we forecast: (1) Revenue +17% to US$382mn (VAe US$373mn), with Cargowise revenue growth +21% to US$333mn (46.4% skew vs 1H23/24 45.5%/47.6%; VAe US$325mn) ; (2) EBITDA +24% to US$188mn (VAe US$189mn); (3) NPAT +32% to US$111mn (VAe US$105mn); and (4) Cap R&D of US$71mn or 53% capitalised (vs guidance 50-55%).
Another positive is that Goldman is expecting the company to reiterate its revised guidance for FY 2025. It adds:
We expect the lowered FY25 guidance to be reiterated, but will be focused on updated commentary, including: (1) 'Significant 2H revenue bias' – given the downgraded guidance reflected delayed product launches, we would expect this language to be moderated – but note VAe 1H/2H25 splits (44.9%/55.1%) are in line with our original forecast, while our current forecasts (46.8%/53.2%) are more reflective of normalized skews; (2) Given currency conversion to USD, we forecast a US$10mn headwind to guidance; (3) Progress on productivity program (A$50mn); (4) We expect prior FY25 exit margin of 53% to be lowered (GSe FY26 margin of 52.9%).
Time to buy
This morning, Goldman Sachs has reiterated its buy rating on the ASX 200 tech stock with a steady price target of $142.00.
Based on its current share price of $123.31, this implies potential upside of 15% for investors over the next 12 months.
Commenting on its buy recommendation, the broker recently said:
We are positive on WiseTech's strong competitive position which contributes to efficiency gains for LGFF's. Over the short-to-medium term we expect WiseTech's earnings profile to benefit from new product releases such as Container Transport Optimizer, as well as continuing to grow penetration of their core business.
We expect WiseTech will continue to focus on product development over the long-term, which should underpin margin expansion and earnings growth. Hence, with the risk/reward profile skewed to the upside we are Buy rated.
