Down another 18%: Why I'd buy WiseTech shares in the dip

WiseTech shares are now around 61% lower than one year ago.

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WiseTech Global Ltd (ASX: WTC) shares have climbed into the green in Friday lunchtime trade.

At the time of writing, the ASX tech shares are up around 1%, and are changing hands for $37.02 a piece.

Today's increase is good news for investors, but it barely makes a dent in the huge amount of losses shed so far this year.

The shares are now down 46% year to date and around 61% lower than a year ago.

A montage of planes, ships, and trucks.

Image source: Getty Images

What happened to WiseTech shares?

WiseTech shares were smashed by a tech sector-wide sell-off and an investor rotation to more stable assets amid global volatility earlier this year. 

The company's shares have also come under pressure this year following a series of updates and media reports surrounding investigations into founder Richard White by the Australian Federal Police and recent news that the Australian Competition and Consumer Commission (ACCC) executed a search warrant on the company.

ASIC and the AFP also searched WiseTech Global's headquarters in late October 2025.

More recently, investors rotated away from the stock after it posted its FY26 results late last month.

WiseTech reported that it has raised its annual earnings and flagged growth for FY27 in line with analysts' expectations.

The company reported a 46% increase in EBITDA to US$558.4 million for the 12 months through to the 30th of June. The result was in line with the company's $550 million to $585 million guidance range but short of market forecasts of $569.5 million.

Investors weren't impressed and quickly sold up their shares. WiseTech shares have now tumbled over 18% since it posted its results.

Why I'd buy WiseTech shares in the dip

It's been headwind after headwind for the tech company this year, and investor confidence has dwindled.

But WiseTech has a strong competitive advantage in the global logistics industry and strong growth prospects. 

The company's CargoWise platform is deeply embedded in the global logistics industry. It is difficult to replace, and this gives WiseTech a strong competitive advantage in the global logistics industry.

If global trade volumes keep expanding and supply chains become more digital, WiseTech could become a dominant software provider in the logistics industry.

CEO Zubin Appoo has also previously commented that AI is actually strengthening the company's advantage in the market. Rather than replacing the need for WiseTech's subscription-based software, he said the company's AI capabilities work to unlock efficiency gains and add value to customers. This is another strong tailwind for the business.

Let's also remember that the company's FY26 results came in line with its guidance figures, and a 46% increase in EBITDA shows that the business is performing well.

After the latest share price sell-off, the shares look significantly undervalued to me.

And it looks like brokers are also confident that WiseTech could still be a turnaround story.

What do brokers tip for the ASX tech stock next?

Market Index shows that all brokers are very bullish on the ASX tech stock and hold a strong buy rating. The average $61.19 target price implies a potential 66% upside over the next 12 months, at the time of writing. 

Most interestingly, this is a significant increase from just a week ago. Immediately following WiseTech's results announcement, brokers were more divided, and the average target price was much lower at $54.71.

TradingView data also shows that brokers are much more positive following the company's results announcement. Of 17 analysts, 13 have a buy/strong buy rating.

The average target price is largely unchanged, at $57.19. This implies a potential 56% upside over the next 12 months, at the time of writing.

If forecasts come to fruition, it looks like now is a great time to buy the shares in the dip while they're still trading for cheap.

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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