Down 56%! Why now is a strong entry point for WiseTech shares

Let's see what analysts are saying about this beaten down stock.

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Key points

  • WiseTech's significant share price drop presents a strong entry opportunity according to DP Wealth Advisory, with its world-class logistics software and solid global growth trajectory remaining intact despite recent challenges.
  • Bell Potter highlights WiseTech's stable recurring revenue model and extremely low customer churn, projecting its shares to more than double, supported by strategic financial management aimed at reducing leverage.
  • Morgans reiterates a buy rating, stating that while recent revenue was modestly below guidance, WiseTech's impressive margin performance and long-term strategic value are compelling, with a price target suggesting significant upside potential.

WiseTech Global Ltd (ASX: WTC) shares were caught up in a tech selloff on Tuesday.

The logistics solutions company's shares ended the day almost 5% lower at $62.63.

This means that its shares are now down 56% from their 52-week high.

Is this a buying opportunity for investors?

The team at DP Wealth Advisory thinks this could be a good time to buy.

In fact, it has named the beaten down tech stock as a buy this week, courtesy of The Bull. Its analysts said:

WiseTech develops and provides software solutions to the global logistics industry. The stock appears oversold, presenting a strong entry point. While management issues and investigations involving the Australian Federal Police and the Australian Securities and Investments Commission have contributed to a plunging share price, the company's world class logistics software and proven global growth trajectory remain intact.

Long term fundamentals and market leadership support a compelling buying opportunity for patient investors. The shares have fallen from $120.50 on July 28 to trade at $68.62 on November 13.

Is anyone else bullish?

There are a number of brokers that are also very bullish on WiseTech shares.

Bell Potter, for example, has a buy rating and $127.50 price target on its shares. This is more than double its current share price.

Its analysts recently commented:

WiseTech is a leading global provider of software solutions to the logistics industry, with its market-leading CargoWise One platform used by many of the world's largest logistics providers. The company's quality is underpinned by a highly predictable business model, with around 95% of its revenue being recurring and a customer churn rate of less than 1%. This provides clear and consistent cash flow, enabling a distinct path to deleverage, with management confident in reducing ND/EBITDA from ~3x in FY26 to 1.7x in FY27.

Elsewhere, the team at Morgans also believes its shares can double. It has a buy rating and $127.60 price target on them. Following its results release in August, the broker said:

WTC's FY25 result was broadly in line with expectations. While revenue was modestly lower than guidance, this was caught up by a 2H25 margin beat which saw WTC deliver underlying EBITDA growth of +27% (margins of 53%). FY26 EBITDA guidance for US$550-585m (+44-53% vs. FY25 reported EBITDA) was materially lower than consensus due largely to accounting treatment to align WTC/E2Open, however we do not see any fundamental change to the longer-term strategic value proposition associated with the acquisition. We reduce our EBITDA forecasts by -10%/-15% respectively in FY26-FY27F. Following these changes our DCF/EV/EBITDA based price target is revised to A$127.60/sh (from A$132.40/sh) and we retain our BUY rating.

Motley Fool contributor James Mickleboro has positions in WiseTech Global. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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