Is it too late to buy WiseTech shares or can they keep rising?

Let's see what one leading broker is saying about this tech stock.

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WiseTech Global Ltd (ASX: WTC) shares have been very volatile in recent weeks.

In October, a flurry of negative media coverage relating to the logistics solutions company's founder sent its shares crashing deep into the red.

Since then, the WiseTech share price has staged a big comeback and have now risen almost 30% from their October low.

But where next for this popular ASX 200 tech stock? Let's see what analysts are saying about it.

Is it too late to buy WiseTech shares?

The team at Goldman Sachs doesn't believe it is too late to invest in the company. Particularly given its investor day update this week, which the broker believes supported its buy thesis.

Commenting on the update, Goldman said:

WTC hosted its investor day today and provided a detailed overview of its product roadmap and plans to become the operating system for global logistics, alongside highlighting the breadth and depth of its executive team.

The broker notes that management spoke about its huge long term growth opportunity. It adds:

Detailed product presentations highlighted the opportunity to deliver significant long-term growth – all of which could be material drivers if successful. CTO is estimated to reduce customer costs by 40-50% (WTC to share in these savings) and has the requisite scale and customer value to drive very strong uptake. However even 'smaller' products within CargoWise Next such as Electronic Bills of Lading offer significant opportunity ($6.5bn industry cost of physical Bills – noting 9 key global carriers committing to fully digitizing this by 2030).

Goldman also highlights that the Richard White's decision to step down as founder CEO into a different role could end up being a big positive. It explains:

WTC is confident that its new leadership structure will work, with Richard White expected to spend more time on driving product development + strategy (increasing from 20% of his time as CEO, to aspirationally 95% in his new role).

Time to buy

In light of the above, Goldman Sachs has reiterated its buy rating and $138.00 price target on WiseTech shares. It then concludes:

We are positive on WiseTech's strong competitive position which contributes to efficiency gains for LGFF's. Over the short-to-medium term we expect WiseTech's earnings profile to benefit from new product releases such as Container Transport Optimizer, as well as continuing to grow penetration of their core business.

We expect WiseTech will continue to focus on product development over the long-term, which should underpin margin expansion and earnings growth. Hence, with the risk/reward profile skewed to the upside we are Buy rated.

Motley Fool contributor James Mickleboro has positions in WiseTech Global. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and 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.

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