When a high-quality ASX growth stock falls 50%, investors face a choice.
Is it broken? Or is it simply out of favour?
One ASX growth stock that has suffered a brutal pullback over the past year is WiseTech Global Ltd (ASX: WTC). The logistics software giant is trading at $47.10, roughly half the level it was this time last year.
The big question now is whether this is a warning sign or an opportunity.
Image source: Getty Images
Why have WiseTech shares fallen?
The selloff hasn't happened in a vacuum. Bell Potter highlights:
WiseTech has also had a large pullback in its share price but this has been more driven by company specific issues like slowing growth in the core business, management and board upheaval and insider trading allegations against CEO and founder Richard White.
The good news is that the broker believes that the ASX growth stock is now moving on from these issues. It adds:
These issues, however, are starting to subside and focus is returning to the outlook for the core business which is improving with the launch of new products, a new commercial model and the integration of a large acquisition (e2open). These initiatives are all expected to help drive a much stronger 2HFY26 result relative to 1HFY26 and then the first full year of benefits will be evident in FY27.
All in all, sentiment has been hit by governance noise and growth concerns. But Bell Potter believes the underlying business momentum could reassert itself.
Why its outlook could improve
WiseTech's CargoWise platform remains deeply embedded in global supply chains. Switching costs are high, integration is complex, and the customer base includes many of the world's largest logistics providers.
The integration of e2open expands WiseTech's footprint further across the global trade ecosystem. If executed well, it could enhance product breadth and strengthen cross-selling opportunities. Bell Potter adds:
All of these changes/initiatives are not without risk and there is still some risk of a soft downgrade to revenue guidance in FY26 at the half year result but the 12-month outlook is positive in our view.
Major potential upside for this ASX growth stock
According to a recent note, Bell Potter has a buy rating and a $87.50 price target on WiseTech shares. Based on current share price of $47.10, this implies potential upside of 86% for investors over the next 12 months.
If this ASX growth stock can stabilise growth, execute on product launches, demonstrate progress with the e2open integration, and show that AI is not a threat, sentiment could shift quickly.
Overall, WiseTech's share price collapse reflects uncertainty, not necessarily a broken business model. This could make it worth considering at current levels.
