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.
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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.
