WiseTech Global Ltd (ASX: WTC) shares have had a brutal fall from grace.
On Thursday, the logistics software company's shares are trading at $36.64, leaving them just above their 52-week low.
They are also down almost 70% from their high, which shows just how much sentiment has turned against the former market darling.
But some brokers believe the selloff has gone too far.
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Why have WiseTech shares fallen?
WiseTech was once one of the ASX's most highly rated technology shares.
Investors were willing to pay a premium for the company because of its global growth story, sticky customer base, and exposure to the enormous logistics industry.
But that premium has disappeared in a flash.
Concerns around valuation, execution, leadership, and artificial intelligence (AI) disruption have weighed heavily on the share price. When a growth stock loses market confidence, the adjustment can be severe, and that is exactly what has happened here.
The key question now is whether the market has marked WiseTech down too aggressively.
What does WiseTech do?
WiseTech's core product is CargoWise, a software platform used by freight forwarders and logistics companies.
This is not consumer-facing technology, and it is not the kind of software most people will ever see. But it sits inside a highly important part of the global economy.
Moving goods across borders is complicated. Logistics companies need to deal with documentation, customs, compliance, shipment tracking, invoicing, and communication between many different parties. CargoWise helps manage that complexity.
That may not sound exciting, but it can be valuable. If software becomes deeply embedded in the daily operations of a freight forwarder, it can be difficult and disruptive to replace.
And global trade is not becoming simpler. Large logistics companies continue to need technology that can handle cross-border complexity at scale. This bodes well for the future demand for CargoWise.
Brokers are bullish
A number of brokers see significant upside for investors.
For example, Bell Potter has a buy rating and $71.75 price target on WiseTech shares. Based on the current share price of $36.64, this implies potential upside of approximately 95%.
Macquarie is even more bullish. It has an outperform rating and $97.70 price target on the company's shares, which suggests upside of approximately 165% over the next 12 months.
Is this a buying opportunity?
After a near-70% fall from its high, WiseTech shares are firmly in the unloved bucket.
But with brokers seeing upside of around 95% to 165%, this beaten-down ASX tech share could be one of the more interesting recovery opportunities on the market.
