Analysts at Macquaire are forecasting some serious upside for Wisetech Global Ltd (ASX: WTC) shares, saying the company "can and will fundamentally reshape the logistics industry''.
Wistech shares have bounced back recently after hitting a 12-month low of $61.49 in November. The stock is now changing hands for $74.49, but the team at Macquarie still believe the shares are materially undervalued following an investor day presentation this week.
Image Source: Getty Image
Company taking big swings
Wisetech chief executive Zubin Appoo said in his presentation to investors that the company was focused on "our big rocks", which were initiatives which moved the needle and drove value for the company.
Those big rocks, and everything we do, anchor back to why we exist. We build products that solve the most complex, high-stakes problems in global trade and logistics – and for our customers that translates into two things that matter above all else: efficiency and throughput at levels they couldn't previously reach, and compliance and risk reduction in a world where global trade is only becoming more complex.
Mr Appoo said the company was also harnessing artificial intelligence to drive productivity across products and inside the company itself.
Shares looking cheap
The team at Macquarie have analysed the investor day presentations and as a result, have upgraded their rating on Wisetech shares to outperform.
They said the company was a true innovator in the logistics sector.
Wisetech can and will fundamentally reshape the logistics industry. We see their highly differentiated proprietary dataset as a competitive advantage that, coupled with E2Open, increases confidence in execution. However, with more than 90% of revenues from customers perceiving disruption, friction will remain very high. These challenges are commensurate with the size and deliverability of the opportunity, but (with) a changing growth dynamic … it will not be an easy path.
Macquarie said there were several risks to guidance for Wisetech, including the "inherent friction in reshaping a market", which the company was doing with its container transport optimisation product, for example.
But they said they were "more confident in the long-term execution'' while remaining cautious on the FY26 result and guidance for FY27.
Macquarie said new product delays, potential reinvestment and customer friction were the risks over the medium term, "however, execution risks are commensurate with the size and deliverability of a massive market opportunity''.
Macquarie has a 12 month price target of $108.50 on Wisetech shares, which coupled with the dividend, would reflect a total shareholder return of 49.8 per cent over a year if achieved.
Wisetech was valued at $24.8 billion at the close of trade on Thursday.
