The WiseTech Global Ltd (ASX: WTC) share price has dropped around 50% in the last six months. Multiple experts think the business is undervalued and that it could produce great returns.
WiseTech provides software called CargoWise that the global trade and logistics industry relies on to carry out its operations. Its customers include over 17,000 logistics companies across 193 countries, including 47 of the top 50 global third-party logistics providers and 24 of the 25 largest global freight forwarders.
According to a CommSec collation of expert opinions on the ASX tech share, there are 13 buy ratings on the business.
UBS is one of the brokers that rates the company as a buy at the current WiseTech Global share price. Let's look at why.
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Strong outlook for returns
The broker recently pointed out in a note that some ASX tech shares have suffered from market concerns around broader displacement.
UBS is positive around software's defensive moat against AI, continued strength in pricing power, and the sector's ability to monetise agentic AI investments, "all of which could drive a meaningful re-rate through the course of the year", in the expert's view.
The broker believes valuations in the sector look attractive relative to the average over the last five years, including the WiseTech Global share price. It thinks WiseTech's double-digit growth profile remains intact, with attractive total addressable market (TAM) potential.
UBS thinks software-as-a-service (SaaS) businesses like WiseTech could be beneficiaries rather than victims of AI, driving average revenue per user (ARPU). The broker's research suggests that customers are willing to pay for AI.
The analysts suggest that WiseTech is moving a lot of customers onto its new commercial model, where customers will be able to access four new AI capabilities.
There is further upside, according to UBS, if large freight forwarders move earlier than expected to the commercial model and customers are willing to pass on CargoWise software costs to the end customer.
UBS expects WiseTech's growth to be driven by price rises and product uptake. The broker expects the new commercial model to drive around 5% price rises going forward.
The broker thinks WiseTech's CargoWise revenue could grow at a compound annual growth rate (CAGR) of around 25% between FY26 and FY29, thanks to the commercial model move, the launch of container transport optimisation (CTO) rollout, and general continued penetration of freight forward customers.
WiseTech Global share price target
A price target indicates where analysts expect the share price to be in 12 months from the time of the investment call.
UBS has a price target of $115 for WiseTech Global shares, implying a potential rise of approximately 90% from current levels.
That implies a great return if the broker is right about the company.
