Analysts upgrade WiseTech after market sell-off
Make us a preferred source
Make us a preferred source on Google
The news: Analysts raised their price targets on WiseTech Global after shares in the troubled technology group's tumbled on Friday, following downgrades to its revenue and EBITDA guidance.
The numbers: Bell Potter reiterated its 'buy' rating on WiseTech and upgraded its price target 13% from $123.75 to $140. It also downgraded its revenue forecasts by 4% in both FY25 and FY26 and 5% in FY27.
Morgans upgraded WiseTech from 'hold' to 'add' and increased its target price from $114.20 to $135.30. It reduced WiseTech's EBITDA forecasts by 5.4% in FY25 and 0.3% in FY26, but upgraded its FY27 estimate by 2.6%.
Goldman Sachs kept its 'buy' rating and $138 target price, but cut its EBITDA forecasts by 7% in FY25, and 5% in both FY26 and FY27.
WiseTech shares fell 12.4% to $121.74 on Friday, after the company downgraded its full-year guidance due to a delay to new product launches, attributed to allegations into founder and former CEO Richard White's private life.
The context: Bell Potter analyst Chris Savage noted that the release of WiseTech's 'Container Transport Optimisation' product pushes back its expected revenue by several months, but "is not lost, just delayed."
"Overall, we do not consider the update bad all things considered and see the upcoming investor day as a potential catalyst for the share price," Savage said.
Likewise, Goldman Sachs analysts said that WiseTech's updated guidance reflects a more conservative view of the revenue ramp up of the company's other new product launches — 'Compliance Wise' and 'CargoWise Next' — with the ramp up of all three products driving "material acceleration" in second-half revenue that was implied by prior guidance.
Morgans analysts said they see WiseTech's FY26 earnings multiple as "increasingly attractive", with the company's upcoming investor day as a potential catalyst for the stock.
The sources: Bell Potter research, Goldman Sachs research, Morgans research
