Australia's WiseTech Global gains as brokerages remain upbeat on co's E2open buy

Shares of WiseTech Global WTC.AX rise 2.6% to A$107.48, their highest levels since October 23, 2024

The logistics software firm on Monday reported a $2.1 billion acquisition of U.S. cloud computing firm E2open ETWO.N

Morningstar sees the deal as "opportunistic" amid ETWO's declining share price and WTC's aim to consolidate the freight-forwarding software sector, and blocking competitors from purchasing ETWO

Brokerage highlights WTC's vision as a global trade and logistics OS provider, but notes it could be a "multidecade journey" given past unsuccessful integration efforts by both firms

Jefferies, however, says the deal can help WTC broaden its market and address early-stage supply chain capabilities

Morgan Stanley says acquisition increases its conviction in WTC being able to achieve brokerage's medium- or long-term forecasts

MS adds while market discussion likely focuses on risks of the deal, it also sees incremental upside for WTC

WTC stock down 11.3% YTD, including current session's moves