It has been a horrible year for WiseTech Global Ltd (ASX: WTC) shareholders.
The logistics software stock is down another 1.39% to $34.76 on Wednesday, taking its 12-month decline to around 63%.
WiseTech shares are also down almost 50% in 2026 and miles below their 52-week high of $99.53.
But at $34.76, I think the sell-off has gone way too far.
Yes, WiseTech still has plenty to prove, but the business is growing, generating cash, and remains a global logistics leader.
If management delivers on its FY27 targets, I think WiseTech shares could have plenty of room to recover from here.
Here's why.
Image source: Getty Images
The business is still growing
You wouldn't know it from the share price, but WiseTech is still putting up some very strong numbers.
FY26 revenue jumped 79% to US$1.4 billion following the e2open acquisition, while underlying net profit increased 29% to US$313.5 million.
What really catches my attention is the cash flow.
Underlying free cash flow climbed 67% to US$489.6 million, giving WiseTech plenty of firepower to invest in growth, reduce debt, and keep improving the business.
The e2open deal is also starting to show some early benefits.
Management delivered around US$115 million of annualised cost savings during FY26, including US$64 million from e2open.
To me, that's a pretty encouraging start.
If WiseTech can keep pulling costs out while growing the combined business, I think earnings and cash flow could move much higher over the next few years.
Margins could be heading higher
WiseTech is expecting FY27 revenue of US$1.48 billion to US$1.54 billion, which would represent growth of 6% to 10%.
But I think the earnings outlook is where things get much more interesting.
Underlying EBITDA is forecast to rise between 12% and 21% to US$725 million to US$780 million, with margins expected to improve to between 49% and 51%.
There's also plenty happening underneath those numbers.
WiseTech currently has 12 large global freight forwarder rollouts underway, while more than 95% of customers have moved onto CargoWise Value Packs.
SME signings have also increased around 55% since the new pricing model was introduced.
That gives me plenty of confidence heading into FY27.
Brokers see huge upside
I am not the only one who is bullish on WiseTech at these levels.
According to TipRanks, there are 9 buy ratings and just 1 hold among 10 ranked analysts, with an average price target of $58.12.
That's around 67% above the current share price.
Morgans has a $62.50 target, Bell Potter is at $65, while Morgan Stanley is even more bullish with a $70 target.
If Morgan Stanley is right, WiseTech shares could more than double from here.
At $34.76, I think the market has already priced in plenty of bad news, while the upside could be significant if earnings keep growing.
