WiseTech Global Ltd (ASX: WTC) shares have been in fine form recently.
Since crashing to a 52-week low of $67.80 in April, the ASX 200 tech stock has rallied approximately 75% to end yesterday's session at $119.05.
But if you thought it was too late to invest, then think again.
That's because the team at Bell Potter believes there is still potential for some market-beating returns over the next 12 months.
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What is the broker saying about WiseTech?
Bell Potter is feeling positive about the company ahead of the release of its full year results next month.
The broker highlights that it sees no danger in WiseTech Global falling short of its guidance. It also sees scope for a positive surprise when it comes to margins. It said:
In FY25 we continue to expect a result consistent with the guidance – revenue at low end of US$792-858m range and underlying EBITDA margin b/w 50-51% – but if anything see some upside surprise potential in the margin given the strong uplift in H1 (+457bp vs pcp) and implied lower uplift in H2 (c.+250bp vs pcp to achieve top end of guidance range). We forecast an underlying EBITDA margin at the top end of the range – 51.1% – but a similar uplift in the margin in H2 as in H1 could result in a full year margin of around 52%.
Equally important will be WiseTech Global's guidance for the year ahead. The good news is that Bell Potter doesn't expect the ASX 200 tech stock to disappoint when it unveils its FY 2026 forecasts. It said:
Our understanding is that WiseTech will provide FY26 guidance for both the core business and the e2open acquisition. Importantly the sell-side appears to have downgraded its expectations for the core business in FY26 – as we have – due to the delay in the launch of CTO and consensus appears to be revenue growth of around 20% which we view as achievable.
The guidance for e2open is perhaps less relevant given it is only early and will contribute for less than a year but also importantly the sell-side appears to be not factoring in much if any of the flagged $50m cost synergies in FY26. We therefore expect the FY26 guidance to be generally consistent with sell-side consensus albeit we do expect an H2 weighting due to the CTO launch delay.
WiseTech shares tipped to keep rising
According to the note, Bell Potter has retained its buy rating on WiseTech's shares with an improved price target of $135.00.
Based on its current share price of $119.05, this implies potential upside of over 13% for investors between now and this time next year.
Bell Potter highlights that WiseTech Global's shares are trading in line with TechnologyOne Ltd (ASX: TNE) despite having a superior outlook. As a result, it feels that higher multiples are justified. It explains:
We note that WiseTech and Technology One trade on similar FY26 EV/EBITDA multiples and PE ratios and in our view WiseTech deserves to trade on a premium given its superior growth outlook.
