WiseTech Global Ltd (ASX: WTC) shares have rebounded strongly in early morning trade on Tuesday.
At the time of writing, WiseTech shares are up over 5% and changing hands for $31.60 a piece.
It's good news for investors after the stock crashed around 18% to a five-year low on Monday.
It's been a steep and sustained share price crash for WiseTech shares, driven mostly by a tech-sector-wide sell-off and an investor rotation to more stable assets amid global volatility earlier this year.
Even after today's increase, WiseTech shares are still down around 54% for the year to date. They're also over 70% lower than this time last year.
Image source: Getty Images
What happened to WiseTech shares this week?
WiseTech shares fell sharply on Monday after media reports that the Australian Federal Police is investigating founder Richard White over alleged trafficking matters. The matters relate to a former cleaner at WiseTech.
It has been claimed that White exploited a former cleaner's immigration status and financial position and provided false information on a visa application.
Investors reacted quickly and rushed to the exits.
Why is the share price climbing higher again today?
In a note to the ASX ahead of the market open this morning, WiseTech has responded to the media reports.
WiseTech said that it notes there was media commentary yesterday alleging an investigation into Richard White, reportedly relating to a visa application. The company said:
The media reports that the alleged investigation relates to Richard White in a personal capacity. There is no suggestion in this media commentary of an investigation into WiseTech.
The Company is not aware of any investigation as outlined in the article. The Executive Chair has provided assurance to the Board that he is not aware of any such investigation and also confirmed that he emphatically and unequivocally denies any involvement in or with human trafficking.
The Company will keep the market updated in accordance with its continuous disclosure obligations.
It looks like the update has helped put investors at ease, and many are buying back into the technology company's shares this morning.
Should investors buy in the dip or stay clear of WiseTech shares?
The outlook for WiseTech shares is largely unchanged at the time of writing. Brokers and analysts are still very bullish on where we'll see the share price travel from here.
Market Index shows that the majority of brokers (six out of seven) are very bullish on the ASX tech stock and hold a strong buy rating. The average $72.39 target price implies a potential 130% upside over the next 12 months, at the time of writing.
TradingView data shows something similar. Out of 14 analysts, 11 have a buy or strong buy rating on WiseTech shares. Another three have a hold rating.
Their average target price is a little lower, at $67.17, but that still implies a potential 113% upside, at the time of writing. The more bullish analysts are tipping an enormous 280% upside to a maximum target price of $119.62.
It looks like it's time for investors to snap up the shares while they're at a rock-bottom price.
