WiseTech Global Ltd (ASX: WTC) shares are pushing higher on Tuesday.
In afternoon trade, the logistics solutions company's shares are up 1.5% to $115.86.
This means that its shares are now up over 50% since this time in April.
And with some big news out of the company this week, could they be destined to keep climbing? Let's see what one leading broker is saying.
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What is the broker saying about WiseTech?
Bell Potter notes that WiseTech has revealed that its acquisition of e2open has completed earlier than expected. This means that FY 2026 will receive a bigger boost from the transaction than first thought. It said:
WiseTech announced the e2open acquisition has been completed which was earlier than we had expected. The company had previously indicated the acquisition was expected to be completed sometime in 1HFY26 and we had assumed the midpoint at the end of 1QFY26. The effective date of the acquisition is therefore around two months earlier than we had anticipated. The EV for the acquisition of US$2.1bn was consistent with what had previously been indicated and which we had assumed.
In light of this, Bell Potter has adjusted its earnings estimates for WiseTech. It adds:
We have updated our forecasts for the earlier-than-expected completion of the acquisition. The only changes, however, are in FY26 where we now assume e2open contributes for c.11 months rather than our previous assumption of c.9 months. The net result is revenue, EBITDA and NPAT/EPS upgrades of 7%, 5% and 4%.
Can WiseTech shares keep rising?
The good news is that Bell Potter believes that WiseTech shares can keep rising from here.
According to the note, the broker has retained its buy rating and $135.00 price target on its shares.
Based on its current share price, this implies potential upside of 16.5% over the next 12 months.
Commenting on its recommendation and what to look out for with its results later this month, the broker concludes:
We have lowered the multiples we apply in the EV/EBITDA and PE ratio valuations from 100x and 52.5x to 95x and 50x given the earlier-than-expected completion of the e2open acquisition. There is, however, no change in the 8.3% WACC we apply in the DCF. The net result is no change in our price target of $135 which is >15% premium to the share price so we maintain our BUY recommendation.
Focus now is on the FY25 result at the end of month where we see two potential catalysts: 1. Achieving the low end of the US$792-858m revenue guidance range (BPe US$795m) but exceeding the 50-51% underlying EBITDA margin guidance range (BPe 52%); and 2. Providing FY26 guidance for the core business consistent with or above market expectations of revenue growth around 20% and an EBITDA margin b/w 52-53%. Updates on the launch of CTO and the new revenue model could also provide catalysts.
