Treasure Chest: WiseTech Global

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FNArena's Treasure Chest reports on money making ideas from stockbrokers and other experts. Today's idea is WiseTech Global.

By Mark Woodruff

Whose Idea Is It?

Citi

The subject:

WiseTech Global ((WTC)).

Citi believes the odds look in favour of guidance for FY27 revenue growth to disappoint. In addition, the broker has lowered FY26 revenue growth for Cargowise to 15%, noting this is near the bottom of management’s 14%-21% growth guidance.

As far as Citi analysts are concerned, main uncertainties include whether WiseTech can convert major freight-forwarding customers to its new commercial model without sacrificing too much near-term revenue or margin, while also delivering delayed AI/product initiatives, managing DSV/e2Open risks, and containing governance-related share-price pressure.

More info:

Management at WiseTech Global is prioritising adoption of its CargoWise Value Packs, plus AI functionality, a strategy Citi views as supportive of long-term growth despite weighing on near-term revenue.

CargoWise is an Enterprise Resource Planning (ERP) platform for the global logistics industry.

The broker continues to view WiseTech as well positioned to enable AI across the logistics industry, supported by its deep workflow functionality and integrations, although AI features expected in June have been delayed.

The value packs aim to bundle a much broader set of software capabilities into a single, transaction-based pricing structure, replacing the previous seat-based licensing model.

As part of an ongoing governance saga, Ord Minnett recently flagged ongoing non-financial risks linked to executive chairman and co-founder Richard White as a potential headwind for the share price.

White recently decided to step down as chairman, which temporarily reinvigorated the share price.

At the time of writing, the shares were trading around $34.63, only a smidgen above before that decision was made public.

WiseTech shares peaked above $135 back in 2024. While a savage global de-rating of software companies has played its part in dragging the share price down since, multiple governance issues and negative media reports focusing on Richard White personally have without any doubt contributed too.

Analysts at Ord Minnett believe the key features of CargoWise Value Packs, including AI tools and an improved disbursement model, are not yet compelling enough to encourage large global freight forwarders to transition before existing pricing agreements expire.

It’s noted some contracts extend beyond 2028.

While only around 5% of WiseTech’s customers are yet to transition to the new model, Ord Minnett notes these are primarily large global freight forwarders that account for around 30% of CargoWise revenue.

It’s believed these customers are content to remain on existing pricing agreements, reflecting the volume discounts they receive.

Back in early June, Bell Potter suggested greater incentives, including transitional price protection and additional training, may be required to accelerate customer migration, weighing on near-term profitability.

Citi also notes delays to the company’s Container Transport Optimisation product, along with migration headwinds from the decision by Danish customer DSV to migrate its operations onto its own transport management platform.

The broker also sees an uncertain outlook for e2Open, the US-based supply chain software company that WiseTech acquired in 2025, which provides supply chain management software for manufacturers, retailers and logistics companies.

Having said all of the above, Citi retains its Buy rating for the company for the one simple reason: the share price looks too low. Even after reducing its price target by -21% to $52; that still leaves a large gap with today’s share price — a gap of more than 50%, to be precise.

The FNArena’s database reveals a clean sweep of seven Buy or equivalent ratings by daily monitored brokers researching WiseTech Global.

Citi’s new target lowers the average target price of these seven brokers to $69.84 from $71.79, implying nearly 102% upside.

Outside daily coverage, Jarden has a Buy rating and $63.00 target.

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