Shares of the ASX-listed WiseTech Global Limited (AU:WTC) soared nearly 13% after Richard White resigned from his role as CEO. The news came as a relief for investors after WTC shares plummeted over 14% in the last 30 days due to allegations concerning White’s conduct. Earlier this week, shares tumbled after the company initiated a review of previous allegations against White.
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WiseTech Global provides cloud-based software solutions, specializing in end-to-end logistics management with its flagship product CargoWise.
WiseTech Welcomes Leadership Change
WiseTech announced in an update yesterday that White will step down as Director and CEO effective immediately. He will transition to a new full-time, long-term consulting role within the company after a brief leave. The consulting role will be focused on product and business development.
At the same time, the company’s CFO Andrew Cartledge will take on the role of interim CEO. A global search for a new CFO is already in progress, and the board will soon initiate a search for a permanent CEO.
WiseTech previously announced that its board is conducting a comprehensive review of the issues raised in recent media reports. The company will carefully evaluate all factors, considering the potential impact of the news. In response, White has denied any wrongdoing in discussions with the board and has opted not to make public statements.
Analysts Shift Gears to Buy Ratings
Following the leadership change, multiple analysts confirmed or upgraded their ratings on WTC stock.
Citi analysts expressed their optimism and upgraded their rating on the stock from Hold to Buy. They indicated that the leadership transition is expected to alleviate concerns without hindering the firm’s short-term growth prospects.
Similarly, analysts from Goldman Sachs and CLSA upgraded their ratings to Buy from Hold. Goldman predicts an upside of 22.01% in the share price, while CLSA projects a modest growth of 7%.
What Is the Target Price for WiseTech?
According to TipRanks’ rating consensus, WTC stock has a Hold rating, backed by four Holds and one Buy recommendation. The WiseTech Global share price forecast is AU$96.96, indicating a downside of 14.3% on the current level.
