A pullback in a quality share price can sometimes create an opportunity. Currently, there are two ASX 200 stocks where brokers believe the market may have become overly cautious.
Both have fallen well below recent highs, yet broker confidence in their longer-term outlooks remains intact. In fact, current price targets point to a level of upside that the market may be underestimating.
Here's why brokers think these two ASX 200 shares could still have plenty of upside from current levels.
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WiseTech Global Ltd (ASX: WTC)
WiseTech's share price has continued to slide, falling 4.3% to $67.16 at the time of writing. The stock is now well down from earlier highs as investors digest slower near-term growth, softer freight volumes, and elevated investment across the business.
That pullback hasn't come out of nowhere. Management has flagged margin pressure linked to heavy product investment and acquisition integration, while sentiment has also been weighed down by company-specific headlines and a broader cooling across global technology stocks.
Even so, brokers are increasingly questioning whether the sell-off has gone too far.
WiseTech remains the global leader in logistics software through its CargoWise platform, which is deeply embedded across many of the world's largest freight forwarders. Demand for end-to-end digital logistics solutions continues to grow, and brokers see WiseTech as well-positioned once conditions stabilise.
Broker price targets remain well above current levels. Citi has retained a buy rating with a $109 target, while Bell Potter has flagged a $100 valuation. From the current share price, that points to potential upside of around 50% to 60% if growth stabilises and margins begin to recover.
NextDC Ltd (ASX: NXT)
NextDC shares are higher today, jumping 7.07% to $12.78 after the data centre operator released an upbeat market update. The move follows confirmation of stronger-than-expected contracted utilisation and continued demand from large customers.
In its announcement, NextDC reported a material lift in contracted utilisation, taking pro forma levels to more than 300MW, alongside a forward order book exceeding 200MW. Much of that capacity is expected to convert into revenue over the coming years, improving earnings visibility into FY26 and beyond.
Brokers have been quick to highlight the significance of the update. Ord Minnett recently reaffirmed its buy rating and lifted its price target to $20.50, while Morgans has maintained a buy rating with a $19 target. From the current share price, those targets imply potential upside of roughly 50% to 60%.
Analysts continue to point to strong demand from hyperscalers, government agencies, and enterprise customers, alongside NextDC's growing exposure to AI-related infrastructure. Several brokers believe AI workloads could add to long-term demand and are not yet fully reflected in earnings forecasts.
Concerns around capital expenditure and funding have weighed on sentiment in recent months, but today's update appears to have highlighted that demand remains strong.
Foolish Takeaway
Despite operating in different industries, brokers see a similar setup taking shape at both WiseTech and NextDC. Short-term uncertainty has weighed on share prices, while long-term growth drivers remain firmly in place.
For investors willing to look beyond near-term volatility, broker targets suggest both stocks could offer substantial upside if execution improves and sentiment begins to stabilise.
