WiseTech shares rally with analysts positive on growth plans
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The news: Shares in WiseTech Global lifted on the ASX as Goldman Sachs reiterated its 'buy' rating on the troubled software company.
The numbers: WiseTech shares were up 1.8% to $130.02 by 2:30pm AEDT, having nearly doubled in value over the last 12 months.
The tech sector, up 0.74%, was the best performing as the wider ASX200 fell 0.36%.
The context: Following WiseTech's investor day on Tuesday, Goldman Sachs analysts noted the company's forecast for "significant" long-term growth, including expectations of reducing customer costs by 40% to 50%.
The analysts also said that current operating momentum remains strong, with WiseTech believing it has passed the "tipping point" for customer adoption in Asia.
Meanwhile, WiseTech is confident that its new leadership structure will work, the analysts noted. Founder and former CEO Richard White is expected to spend more time on driving product development and strategy, increasing from 20% to "aspirationally" 95% in his new role.
The source: Goldman Sachs research
