Strategic Acquisition of e2open Bolsters Wisetech Global’s Market Position and Shareholder Value

Wisetech Global (WTCHF – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Andrew McLeod from Morgan Stanley maintained a Buy rating on the stock and has a A$140.00 price target.

Andrew McLeod has given his Buy rating due to a combination of factors that highlight both strategic and financial benefits for Wisetech Global. The acquisition of e2open, despite being a significant move funded entirely by debt, is seen as a positive step that enhances Wisetech’s competitive edge. This acquisition is expected to strengthen CargoWise’s market position by reducing customer churn, increasing average revenue per user, and lowering customer acquisition costs, all of which are likely to contribute to shareholder value.
Furthermore, the acquisition is anticipated to be financially beneficial, with expectations of earnings per share growth from the first year. The long-term potential is also promising, as e2open’s existing relationships in various parts of the supply chain could open new opportunities for Wisetech’s product offerings and expand its total addressable market. Despite the risks associated with e2open’s lower growth rates, the overall risk-return profile is considered attractive, supporting the Buy rating.

In another report released on May 13, CLSA also maintained a Buy rating on the stock with a A$124.00 price target.