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The WiseTech Global Ltd (ASX: WTC) share price is $64.78, up 3% while the S&P/ASX 200 Index (ASX: XJO) is up 1.16%.
Wisetech shares hit a 52-week low of $61.49 this week.
Last month, the market’s biggest ASX tech share lost almost a quarter of its market cap.
This followed news of an investigation by the Australian Federal Police and the Australian Securities and Investments Commission.
The AFP and ASIC are looking into share trades by founder Richard White during a blackout window.
Blackwattle portfolio managers, Tim Riordan and Michael Teran, said:
While this is a distraction, we believe the refreshed board (3 new independent directors) and new management team (new CEO and CFO) is a step in the right direction towards improving governance and reducing key person risk.
In their latest bulletin, Riordan and Teran described the sell-off as “overdone”.
They noted that the Wisetech share price had lost more than 40% since the company released its FY25 results in August.
Looking ahead, though, the analysts think the outlook for the business is bright, commenting:
We remain confident that the FY27 and beyond outlook remains robust, and the selloff in the share price is a highly attractive opportunity, with WTC trading below 20x EV/EBITDA for FY27, well below its historical multiple of ~45x EV/EBITDA.
Riordan and Teran have confidence in the company’s products and its potential for growth.
They said Wisetech’s CargoWise software product suite allowed logistics services providers to maximise their productivity.
WTC has contracted 11 of the Top 25 Global Freight Forwarders to their products, providing these freight forwarders with a competitive advantage through productivity gains. WTC is a global leader in logistics services software.
We view WTC as an ‘Enduring Quality’ business, one of the highest quality companies on the ASX, continuing their multi-decade customer and product growth journey.
This significant long-term, compounding growth profile and highly attractive Risk/Reward makes the current share price selloff a significant investment opportunity.
Riordan and Teran are not alone in their backing of the ASX tech share.
Jed Richards from Shaw and Partners said Wisetech had been “oversold”, with today’s share price “presenting a strong entry point”.
On The Bull this week, Richards said he had a buy rating on Wisetech shares, commenting:
While management issues and investigations involving the Australian Federal Police and the Australian Securities and Investments Commission have contributed to a plunging share price, the company’s world class logistics software and proven global growth trajectory remain intact.
Long term fundamentals and market leadership support a compelling buying opportunity for patient investors.
