MACQUARIE GROUP LIMITED (ASX:MQG) has upgraded WiseTech Global to Outperform, maintaining a target price of $108.50, which implies 49% upside from the last traded price of $72.58.
Analyst Andrew Gillies argues that the logistics software company is prioritising long-term value creation over near-term financial metrics, even as execution risks remain elevated. Around 850 of WiseTech’s large freight forwarder customers are yet to move across to the company’s new revenue model, with the top 300 customers accounting for more than 70% of FY24 sales.
Gillies believes WiseTech “can and will fundamentally reshape the logistics industry”, citing its highly differentiated proprietary dataset as a key competitive advantage. He says this, combined with the E2Open acquisition, boosts confidence in the company’s ability to deliver on its strategy.
However, with more than 90% of revenue coming from customers who view the transition as disruptive, Gillies expects friction to remain high. He notes that investor focus is likely to stay on the shift to CargoWise Value Packs and how this transition feeds into WiseTech’s FY26 guidance.