Wisetech Shares Slip as Citi Lowers Price Target Despite Buy Rating

Highlights:

• Wisetech Global Limited (ASX: WTC) shares slipped 1.5% at the time of writing after Citi trimmed its price target despite keeping a “buy” rating.
• Citi lowered its short-term target by 9% to $121.35, citing concerns over near-term growth and weaker trade volumes.
• Analysts remain positive on Wisetech’s long-term outlook, pointing to strong demand for its CargoWise logistics platform.

Stock Performance

Wisetech Global Limited (ASX: WTC) came under pressure in Wednesday’s trade after Citi reaffirmed its “buy” rating on the stock but trimmed its short-term share price target. At the time of writing, Wisetech shares had fallen 1.5%, reflecting investor caution over growth prospects.

Citi’s Revised Outlook

Citi cut its 12-month price target for Wisetech by 9% to $121.35, citing concerns over the company’s near-term growth momentum. Despite the reduction, Citi maintained a positive outlook on the stock in the long term, noting that its global logistics software business remains well-positioned for structural demand growth. Analysts flagged that while Wisetech continues to dominate the logistics technology sector, macroeconomic headwinds, including slower global trade volumes, could weigh on its short-term performance. The revised price target reflects these risks, though Citi emphasized that the company’s fundamentals remain intact.

Growth Challenges and Market Sentiment

Investor sentiment around Wisetech has been mixed in recent months. While its expansion strategy and strong balance sheet continue to attract long-term interest, the stock has faced volatility amid concerns about customer demand and the pace of integration from recent acquisitions. Market watchers noted that Citi’s cautious tone underscores broader concerns about growth stocks in the current environment, particularly as higher borrowing costs and global economic uncertainty put pressure on valuations.

The Bigger Picture

Wisetech remains a key player in digital logistics, with its CargoWise platform widely adopted by global freight forwarders. While near-term growth hurdles have dampened enthusiasm, many analysts believe the company’s strong positioning in a critical industry will continue to support its long-term trajectory.

For now, the focus remains on how Wisetech manages integration, innovation, and execution in a challenging market environment.

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