WiseTech Global Ltd (ASX: WTC) shares have slumped further into the red in Thursday lunchtime trade.
At the time of writing, the shares are down around 0.2% to $34.58 a piece, extending yesterday's losses. On Wednesday afternoon, the ASX tech shares closed around 8% lower.
The shares have recovered around 20% from a five-year low in late-June, but the recovery hasn't been sustained and is nowhere near enough to recoup losses shed over the past year.
For the year to date, WiseTech shares are still down around 50%, and they're almost 70% lower than this time last year.
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Why are WiseTech shares struggling to rebound?
WiseTech shares have suffered a steep, sustained price decline over the past 12 months. The decrease has mostly been driven by a tech-sector-wide sell-off and an investor rotation to more stable assets amid global volatility earlier this year.
The company recently faced headwinds following 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.
The company responded and said that the alleged investigation relates to Richard White in a personal capacity. It added that there is no suggestion in this media commentary of an investigation into WiseTech.
But it hasn't stopped investors rushing to the exits.
The question now is, how low can WiseTech shares go?
Here's what the experts think.
Broker forecasts for the ASX tech stock this year
WiseTech shares have suffered a continual tumble this year, but if broker forecasts are anything to go by, the end should be in sight.
Market Index shows that the majority of brokers (seven out of eight) have a buy rating on the shares. The average $72.80 target price implies a potential 111% upside over the next 12 months, at the time of writing.
TradingView data also shows potential for a strong upside ahead. Out of 15 analysts, 12 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 $65.60, but that still implies a potential 90% upside at the time of writing. In fact, interestingly, the range between the minimum and maximum target price is huge, but they all agree there will be some element of upside ahead.
The more bullish analysts are tipping an enormous 248% upside to a maximum target price of $120.60. Even the minimum $37.89 target price implies a potential 10% upside at the time of writing.
Bell Potter is one broker who is optimistic about the shares. The broker has a buy rating and a $71.75 target price on the shares.
Analysts are clearly very optimistic about the outlook for WiseTech shares. But I think that the latest sell-off shows that investors are still nervous that the company can deliver.
Even so, WiseTech has a strong competitive advantage in the global logistics industry. I think the company's future hinges primarily on its FY26 results. If the company manages to reach or exceed its upgraded guidance, I think we'll see a turnaround in investor sentiment.
