WiseTech Global Ltd (ASX: WTC) shares have had a turbulent week.
Concerns over product delays and a boardroom fallout have weighed heavily on the logistics solutions company's shares.
As a result, the WiseTech share price is now down 32% from its 52-week high.
While this is disappointing for shareholders, it could have presented investors with a compelling buying opportunity according to analysts.
One of those is Goldman Sachs, which sees significant value in the fallen market darling.
What is Goldman saying about WiseTech shares?
Goldman highlights that WiseTech has released a strong half year result this week which was in line with expectations. In addition, it notes that there were a number of other positives from the result release. It said:
Key positives: (1) The in-line 1H25 result, and consistent 1H/2H CW growth reduces the risk of any further revenue downgrades this year; (2) LOGISTEED, a top 25 LGFF, has signed up, continuing Cargowise's strong momentum with large global forwarders; (3) WTC noted of the 13 LGFFs contracted and in progress, only 20% of expected users are currently live – this was 45% at FY24, and supports ongoing contracted revenue growth; (4) Customs/Warehouse usage grew +25% / > 50% in the half – both of which are significant long-term growth drivers; (5) Efficiency program expanded to US$36mn (from US$33mn), particularly evident in sales and marketing (-11% decline).
That's not to say that there weren't any negatives. The main one being delays to product launches, which is holding back an acceleration in its growth. The broker explains:
Key negatives: (1) The ongoing product delays remains our key concern – given these were the key driver behind the expected acceleration in growth – noting we previously forecast +44% CW 2H25 revenue growth following the FY24 result vs. +20% now. With CTO only planned for launch in Australia in 2H25 we would expected limited revenue contribution – given complexities adopting a country-specific solution for global forwarders.
Time to buy
In response to the company's half year results, the broker has reaffirmed its buy rating with a trimmed price target of $128.00.
Based on its current share price of $96.50, this implies potential upside of approximately 33% for WiseTech shares over the next 12 months.
Commenting on its buy recommendations, the broker 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 the company 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.
