Broker gives its verdict on the WiseTech Global (ASX:WTC) share price

Is it too late to buy this market darling's shares?

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The WiseTech Global Ltd (ASX: WTC) share price has been one of the best performers on the S&P/ASX 200 Index (ASX: XJO) in 2021.

Since the start of the year, the logistics solutions company's shares have risen an incredible 66%.

Why is the WiseTech Global share price rocketing higher?

Investors have been bidding the WiseTech Global share price higher this year following a very impressive performance in FY 2021.

For the 12 months ended 30 June, the company reported an 18% increase in revenue to $507.5 million and a 63% jump in EBITDA to $206.7 million. The latter was well ahead of its EBITDA guidance of $165 million to $190 million.

Also giving the company's shares a lift was its guidance for the year ahead. Management advised that it is expecting further strong growth in FY 2022 and has provided guidance for EBITDA growth of 26% to 38%.

Is too late to invest?

Unfortunately, one leading broker doesn't see enough value in the WiseTech Global share price at present to recommend it as a buy.

According to a recent note out of Bell Potter, its analysts have put a hold rating and $47.50 price target on the company's shares.

Based on the current WiseTech Global share price of $50.58, this implies potential downside of 6% over the next 12 months.

Bell Potter commented: "We have upgraded our FY22 and FY23 EBITDA forecasts by 23% and 26%. We now forecast FY22 EBITDA of $294.3m which is above the top end of the $260-285m guidance range while our FY22 revenue forecast of $622.8m is within the $600-635m guidance range. Note we forecast the EBITDA margin to increase from 40.7% in FY21 to 47.3% in FY22."

"The net result is a 51% increase in our PT to $47.50 which is a modest premium to the share price [at the time] so we maintain our HOLD recommendation," it added.

In light of this, investors may want to hold out for a better entry point before considering an investment.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended WiseTech Global. The Motley Fool Australia owns shares of and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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