Citi slashes WiseTech target price on 'near-term growth concerns'
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The news: Citi has slashed its 12-month target price on software giant WiseTech Global by 9% amid what the broker said were "near-term growth concerns".
The numbers: Citi retained its 'buy' rating on the stock but cut its target price from $134 to $121.35. WiseTech last closed at $99.40, having retreated 20% over the last 12 months.
The context: Citi analyst Siraj Ahmed noted that revenue growth in WiseTech's key software platform CargoWise slowed during the second half of FY25.
According to Citi's forecasts, CargoWise revenue growth will slow to 10% in the first half of FY26 compared to the prior corresponding period. However, it is expected to pick up to 24% year on year in the second half.
Ahmed sees medium-term growth drivers as "intact", with the company's new commercial model expected to drive increased adoption due to simplified pricing, bundling of different modules, and embedding agentic artificial intelligence.
The source: Citi research
