Does MM like Wisetech (WTC) after its result?
Hi James and Team, Would you please advise whether you consider WTC a Buy after their report yesterday?
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Answer
Hi David,
The result was strong and they’re still growing in a tough environment, although their guidance does imply slower rates of growth in the 2H23. The charts looks good and the momentum is hard to argue with. On UBS numbers, WTC is expected to more than double revenue and profits in the next 3 years and this is clearly attractive for investors. We have not owned WTC (and seems to have been the wrong call) because of the huge volume of acquisitions they have done, and will likely do in the future. This continual desire to buy things can at times create smoke and mirrors with regard to underlying company performance, however we note that the majority of analysts remain positive on the stock post this recent update. It’s just not a stock that sits comfortably with MM.
