Macro Intelligence: spotlight on WiseTech

Written by Juliette Saly

In this week’s edition of IG Macro Intelligence, we take a deep dive into WiseTech Global.

WiseTech turmoil

The Australian Securities and Investments Commission (ASIC) has launched an inquiry into WiseTech Global, following a boardroom clash over whether a review into the behaviour of the company's founder, Richard White, should be made public.

Share price performance

WiseTech shares have fallen over 25% in six months during the internal review, dropping from $137 to $90.

In December, White told investors he had sold nearly 3.6 million shares from October to 20 December 2024, netting more than $200 million.

However, shares spiked higher amid confirmation of White’s return, following a dramatic 20% drop in one day sparked by the resignations of four company directors.

Scott Phillips from Motley Fool noted investors value White's presence.

WiseTech daily chart

WiseTech trend analysis

ASX Tradewatch data shows the stock is in a downtrend over both short and long-term horizons. The five-day moving average (MA) is below the 20-day MA; while longer-term, the five-day MA also sits below the 50-day MA, suggesting investors see better opportunities elsewhere.

Analyst recommendations

The average recommendation on the stock is a 'Buy' according to Refinitiv, with a price target of $119.53, suggesting it can rally a further 32% from current levels.

WiseTech recommendation chart by Refintiv

Macquarie analysts are most bullish on the stock, with a price target of $152.70, suggesting the stock can increase close to a further 70%. The analysts warn that Richard White’s transition to Global Executive Chairman re-invigorates discussions on risk and governance, but also note it reinforces his commitment to the company he founded.

Philip Peppe from Shaw and Partners says in founder-led businesses, back the founder. Despite being major shareholders, corporate governance in such companies remains challenging.

Demetria Chelepy from Sharesies observes investors focusing on WiseTech's business performance over the scandal, unlike other Chief Executive officer (CEO)-driven companies.

WiseTech analyst recommendations chart

Highlights from earnings report

WiseTech posted a 38% rise in first-half (H1) profit and increased its dividend, but warned that full-year revenue will fall at the bottom end of its guidance due to further delays in the rollout of three of its key products.

• Statutory net profit after tax (NPAT): rose 38% to $77.1 million in the period
• Revenue: up 17% to $327 million
• Interim dividend of $0.067 per share was declared, up 31% on last year's payout - equivalent to a payout ratio of 20% of underlying NPAT.

WiseTech is guiding full-year 2025 revenue between $792 - $858 million, up between 16 - 26% from full-year 2024, citing uncertainty around future economic and industrial production growth, along with geopolitical risk which may reduce assumed growth rates.

WiseTech H1 earnings results