Why WiseTech shares are now looking like a bargain buy

WiseTech Global Ltd (ASX: WTC) shares are edging lower today.

Shares in the S&P/ASX 200 Index (ASX: XJO) logistics software solutions company closed yesterday trading for $38.20. During the Tuesday lunch hour, shares are changing hands for $38.15 apiece, down 0.1%.

For some context, the ASX 200 is up 0.8% at this same time.

Unfortunately for faithful shareholders, today’s underperformance is not a novel occurrence.

Indeed, WiseTech shares have tumbled a painful 61.6% over the past 12 months.

A lot of that selling pressure has come amid the broader global sell-down that’s hit most Software as a Service (SaaS) stocks. This has been driven by investor concerns that artificial intelligence, or AI, could have the potential to replace a lot of the services these companies provide.

Or the so-called SaaSpocalypse.

However, after the big share price retrace, Dolphin Partners Financial Services’ Arthur Garipoli believes WiseTech shares could now be trading at a significant discount (courtesy of The Bull).

Should you buy WiseTech shares today?

“WiseTech develops and provides software solutions to the global logistics industry,” Garipoli said.

Explaining his buy recommendation on WiseTech shares, he noted:

The company recently reaffirmed EBITDA [earnings before interest, taxes, depreciation and amortisation] and margin guidance for fiscal year 2026.

WTC wasn’t immune to the recent sharp sell off in technology stocks due to potential artificial intelligence disruption. Most broker forecasts are at a significant premium to the recent share price.

What’s the latest from the ASX 200 tech share?

WiseTech reported its half-year (H1 FY 2026) results on 25 February.

The results, covering the six months to 31 December, included the first five months of consolidated results from WiseTech’s acquisition of United States supply-chain software company e2open.

Highlights from the first half included a 76% year-on-year revenue boost to US$672 million.

And reported EBITDA was up 31% from H1 FY 2025 to US$252.1 million.

On the bottom line, WiseTech reported a 2% increase in underlying net profit after tax (NPAT) to US$114.5 million.

And, as Garipoli mentioned above, the company reaffirmed its FY26 guidance.

The ASX 200 tech stock expects full-year revenue between US$1.39 billion and US$1.44 billion, which would represent growth of 79% to 85%. Management forecasts full-year EBITDA in the range of US$550 to US$585 million, up 44% to 53% from FY 2025.

As for the potential impact of AI on WiseTech shares, CEO Zubin Appoo said the technology was a benefit rather than a hindrance.

He noted:

AI is strengthening our advantage, enabling significantly more automation and value for our customers, embedding our products more deeply into their daily operations, and unlocking levels of efficiency gains across WiseTech that were previously out of reach.

The post Why WiseTech shares are now looking like a bargain buy appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.