WiseTech Global Ltd (ASX: WTC) shares have rallied strongly from their lows.
So much so, the logistics solutions technology company's shares are up 17% since this time last month.
But if you thought you were too late to invest, you might be wrong.
That's because Bell Potter believes its shares could continue to rise strongly from where they currently trade.
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What is the broker saying?
Bell Potter was pleased to see the company reaffirm its guidance on Tuesday. This means the company remains on track to achieve the broker's estimates for the year. It said:
WiseTech released a presentation for a broker conference and the key take-out was reaffirmation of the FY26 EBITDA and EBITDA margin guidance – US$550-585m (vs BPe US$564m) and 40-41% (vs BPe 40.1%). The key new piece of news was the company also provided guidance for underlying EBITDA and EBITDA margin of US$598.5-637.5m (vs BPe US$612m) and 41-46% (vs BPe 43.5%).
This underlying guidance implies one-off costs b/w $48.5-$52.5m – comprising US$11-15m in M&A costs and US$37.5m in restructure costs – which was slightly more than the US$45- 50m flagged at the H1 result in February. Notably there was no mention of the redundancy costs related to the flagged 2,000 job reductions so we figure these will be disclosed in or around the FY26 result in August along with the spread of those costs between FY26 and FY27 (assuming it is spread across both years).
Big potential returns
In response to the guidance update, Bell Potter has reaffirmed its buy rating and $78.75 price target on WiseTech Global's shares.
Based on its current share price of $45.75, this implies potential upside of 72% for investors over the next 12 months.
Bell Potter sees potential catalysts ahead, which could support a re-rating. This includes its guidance for FY 2027, which Bell Potter believes could be stronger than its current estimates. It concludes:
There is no change in our $78.75 target price which we only recently updated. Our PE ratio and EV/EBITDA valuations are generated using our FY27 forecasts and with no change in these forecasts there is no change in the valuations. Our target price remains a significant premium to the share price so we retain our BUY recommendation.
The next update and potential catalyst for the share price is the FY26 result in August where, assuming the guidance is met, key focus will be on the guidance for FY27. We note our FY27 revenue and EBITDA forecasts of US$1,567m and US$728m imply an EBITDA margin of 46.5% which in our view could be conservative given the underlying guidance for FY26 is b/w 41-46% and the exit margin is likely to be towards the top end of this range.
