Shares in logistics software company Wisetech Ltd (ASX: WTC) have been relatively out of favour in recent times, and remain trading not far off their 12-month lows.
However, the consensus seems to be that the only way is up, with 12 of the 14 analysts surveyed by Tradingview having a strong buy recommendation on the stock, and two having it as a hold.
The price targets are all above the current share price of $67.43, ranging from $74.08 to a very bullish $177.09.
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Share price upside likely
The team at Jarden have this week put out a research note on the stock, and they're also predicting share price upside, with their $74 price target implying a 10% total return, including Wisetech's very modest dividend yield.
The Jarden team said Wisetech is reporting its half-year results on February 25, and the company has a history of surprising the market both positively and negatively.
They expect new contract wins and a faster rollout of the company's CargoWise product to be a surprise to the upside.
The Jarden team went on to say:
For FY26, we see potential upside if execution of the new commercial model drives a higher-than-expected revenue uplift with limited churn, as well as if Wisetech can successfully roll out new products including Container Transport Optimisation. We also believe Wisetech's operating cost guidance may be conservative
Possible downsides include higher customer churn as a result of a move to the company's CargoWise Value Pack product, "as well as consolidation of systems within large global freight forwarders to non-CargoWise based software also present downside risk to Wisetech's FY26 guidance".
The Jarden team is expecting the first half underlying EBITDA to come in at US$274 million, up 41% on the previous corresponding period, with revenue up 70% to US$649 million.
Other risks to the company's results include a reduction in global shipping volumes, with volumes into the US softening in the first half, Jarden said.
Another longer-term key risk for the company could be artificial intelligence, the Jarden team said:
The extent to which AI might benefit or disrupt WiseTech. For instance, AI could enable customers to use WiseTech's capabilities more efficiently in combination with its unique data assets, or could AI-driven solutions disrupt WiseTech?
Wisetech was valued at $22.65 billion at the close of trade on Wednesday.
The company's shares have traded between $61.49 and $130.50 over the past year.
