RBC Upgrades WiseTech to Outperform Despite Board Concerns

Highlights:

• RBC Capital Markets upgraded WiseTech Global (ASX: WTC) to “outperform,” citing strong market leadership and long-term growth potential.
   
• At the time of writing, RBC reduced WiseTech’s FY26 sales and earnings forecasts by 3% and 5%, respectively, due to lower trade volumes and economic uncertainty.
   
• Board independence remains a concern, but RBC believes WiseTech’s valuation and growth trajectory make it a strong investment opportunity.

RBC Revises Rating but Flags Governance Issues

RBC Capital Markets has upgraded WiseTech Global (ASX: WTC) to an “outperform” rating, citing its strong market leadership and long-term growth potential. However, analysts raised concerns about board independence and the ongoing influence of founder Richard White.

Forecast Cuts Amid Economic Uncertainty

Despite the rating upgrade, RBC reduced its financial year 2026 sales and earnings forecasts by 3% and 5%, respectively, citing lower trade volumes due to tariffs and an uncertain economic climate. At the time of writing, WiseTech’s stock remains under close investor scrutiny as it navigates these challenges.

Leadership Appointments in Progress

The company recently appointed two new non-executive directors, a move RBC described as a “step in the right direction.” However, WiseTech is still in the process of hiring a new chief financial officer and chief executive officer after White, its founder and former CEO, stepped down last year amid a board-led review. He has since returned as executive chairman following the departure of four independent directors.

Long-Term Potential Outweighs Risks

While RBC acknowledged concerns over board independence and White’s continued involvement, it emphasized that WiseTech’s dominant market position and attractive valuation make it a compelling investment. The firm noted that WiseTech is currently trading below its five-year average, presenting a potential opportunity for long-term investors.

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