The WiseTech Global Ltd (ASX: WTC) share price is trading lower with the rest of the market on Monday.
In afternoon trade, the logistics solutions company's shares are down 1% to $32.00.
This decline has limited the WiseTech Global share price gain for 2021 to 5%. This means it is underperforming the ASX 200's gain of 8% year to date.
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Is the WiseTech Global share price good value?
One leading broker that believes WiseTech Global's shares are trading at an attractive level is Morgan Stanley.
According to a note out of the investment bank this morning, the broker has retained its overweight rating and $35.00 price target on the company's shares.
Based on the current WiseTech Global share price, this price target implies potential upside of ~9.5% over the next 12 months.
What did the broker say?
The broker notes that one of its rivals has just released its quarterly results. For the three months ended 30 April, Canada-based Descartes Systems reported an 18% increase in revenue and a 49% jump in operating income.
This was stronger than the market was expecting and driven by a number of positive tailwinds. These include opportunities created by the UK's departure from the EU, a cyclical recovery in freight volumes, and increased demand for cloud-based transport and logistics software.
The good news for WiseTech Global is that the broker believes these tailwinds will also be driving growth in its revenues over the coming years as well.
Outside this, Morgan Stanley has previously spoken about how it believes the company will benefit from its customers growing through mergers and acquisitions. It feels the market is underestimating the potential revenue uplift from ongoing consolidation among freight forwarders.
Is anyone else bullish on WiseTech Global?
Macquarie is also positive on WiseTech Global. It currently has an outperform rating and $34.00 price target on the company's shares.
Earlier this month, the broker suggested that the company was likely to outperform its guidance in FY 2021.
