WiseTech Global stock downgraded by RBC as FY26 guidance disappoints

Published 28/08/2025, 05:42
WiseTech Global stock downgraded by RBC as FY26 guidance disappoints

Investing.com - RBC Capital downgraded WiseTech Global Ltd (ASX:WTC) from Outperform to Sector Perform while lowering its price target to AUD120.00 from AUD130.00.

The downgrade follows what RBC described as "sticker shock" on WiseTech’s CargoWise FY26 sales guidance and lower EBITDA/margin figures that have unsettled investor confidence.

The sales guidance midpoint came in 9% below consensus expectations, with the company providing a wide growth range of 14-21% due to uncertainty around new product adoption and the implementation of a new transaction-only revenue model.

RBC noted that the EBITDA guidance miss can largely be attributed to one-off E2Open integration costs and share-based payments, with FY26/27 EBITDA estimates now reduced by 15% and 25% respectively.

Despite the short-term concerns prompting the downgrade, RBC remains positive on WiseTech’s long-term prospects, citing the company’s progress in "building a global moat with a robust transaction revenue model, product rollouts and expanding customer base with E2Open."

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