Wisetech share price a 'highly attractive opportunity' after sell-off: fundie

Wisetech shares have fallen by more than 40% since the company released its FY25 results in August.

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Key points
  • Wisetech's share price is up 3% to $64.78 despite recent lows and market concerns over investigations into its founder's share trades, with analysts viewing the sell-off as an overreaction.
  • Blackwattle portfolio managers back Wisetech's potential, emphasising its robust outlook beyond FY27, strong governance improvements, and valuable CargoWise software, which underpins long-term growth.
  • With Wisetech shares trading below their historical valuation multiples and maintaining strong customer and product growth in logistics software, these experts regard the current share price as an attractive investment opportunity.
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The WiseTech Global Ltd (ASX: WTC) share price is $64.78, up 3% while the S&P/ASX 200 Index (ASX: XJO) is up 1.16%.

Wisetech shares hit a 52-week low of $61.49 this week.

Last month, the market's biggest ASX tech share lost almost a quarter of its market cap.

This followed news of an investigation by the Australian Federal Police and the Australian Securities and Investments Commission.

The AFP and ASIC are looking into share trades by founder Richard White during a blackout window.

Blackwattle portfolio managers, Tim Riordan and Michael Teran, said:

While this is a distraction, we believe the refreshed board (3 new independent directors) and new management team (new CEO and CFO) is a step in the right direction towards improving governance and reducing key person risk.

In their latest bulletin, Riordan and Teran described the sell-off as "overdone".

They noted that the Wisetech share price had lost more than 40% since the company released its FY25 results in August.

Looking ahead, though, the analysts think the outlook for the business is bright, commenting:

We remain confident that the FY27 and beyond outlook remains robust, and the selloff in the share price is a highly attractive opportunity, with WTC trading below 20x EV/EBITDA for FY27, well below its historical multiple of ~45x EV/EBITDA.

Riordan and Teran have confidence in the company's products and its potential for growth.

They said Wisetech's CargoWise software product suite allowed logistics services providers to maximise their productivity.

WTC has contracted 11 of the Top 25 Global Freight Forwarders to their products, providing these freight forwarders with a competitive advantage through productivity gains. WTC is a global leader in logistics services software.

We view WTC as an 'Enduring Quality' business, one of the highest quality companies on the ASX, continuing their multi-decade customer and product growth journey.

This significant long-term, compounding growth profile and highly attractive Risk/Reward makes the current share price selloff a significant investment opportunity.

Riordan and Teran are not alone in their backing of the ASX tech share.

Jed Richards from Shaw and Partners said Wisetech had been "oversold", with today's share price "presenting a strong entry point".

On The Bull this week, Richards said he had a buy rating on Wisetech shares, commenting:

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.

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. 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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