WiseTech Global Ltd (ASX: WTC) shares have underperformed materially over the last 12 months.
While this is disappointing for shareholders, it could have created a compelling buying opportunity for others.
That's the view of analysts at Bell Potter, who believe the ASX tech stock could have huge upside potential.
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What is the broker saying?
Bell Potter notes that there has been a bit of a rally in the tech sector recently. However, WiseTech shares have missed out due to a number of reasons. It said:
There has been a tech rally of sorts on the ASX over the past couple of months and this has been led by some of the large cap names including Pro Medicus, Block and Life360. One large cap which has not rallied, however, is WiseTech and this is likely due to a number of factors including further negative press reports around founder and Chief Innovation Officer Richard White, concern around the potential future loss of key customer DSV and risk around both the FY26 result and FY27 guidance and whether each meets market expectations.
The good news is that Bell Potter believes that a change could be coming for its shares. This is especially the case given its belief that WiseTech will deliver on its guidance for FY 2026 and provide guidance that meets expectations. It adds:
In our view, however, these negatives will start to dissipate over the coming months and indeed have already commenced with the appointment earlier this month of Raelene Murphy to Chair which we regard as a positive move. We also believe the company will achieve its FY26 guidance when it reports next month – albeit with some risk around revenue but this should be made up by the margin – and the FY27 guidance will meet expectations following downgrades by the sell-side (ourselves included) over the past few months.
This potential reduction in negatives could lead to a rally in the share price and this may have already started with the appointment of the new Chair. Some positive outlook statements at the result next month could provide further impetus and, as examples, may include expectations of large freight forwarders shifting to the new pricing model in FY27 and DSV shifting more DB Schenker volumes onto CargoWise.
WiseTech shares tipped to double
According to the note, the broker has retained its buy rating and $71.75 price target on the company's shares.
Based on its current share price of $34.95, this implies potential upside of 105% over the next 12 months.
Commenting on its buy thesis, Bell Potter said:
There is also no change in our target price of $71.75 and we maintain the BUY. We believe the stock looks value on an FY27 EV/EBITDA multiple of c.15x and is trading at an excessively large discount to the Technology One multiple of c.27x. We note WiseTech has higher forecast earnings growth than Technology One over the next few years given the expected margin recovery post the e2open acquisition.
