UBS initiates on Tyro Payments, Australia’s fifth largest payments terminal provider. The broker likes Tyro Payments’ broader payments ecosystem compared to competitors and forecasts a group transaction value compound annual growth rate of 15% over the next five years.
Key to achieving this growth target will be larger and enterprise merchants, according to UBS. The broker assume the company currently holds 16% market share in its key verticals of retail, hospitality and health.
The broker considers the stock an attractive entry point given de-rating that has seen the valuation reduce to a 4x premium from a peak 12x premium.
The broker initiates with a Buy rating and a target price of $2.30.
Sector: Software & Services.
Target price is $2.30.Current Price is $1.68. Difference: $0.62 – (brackets indicate current price is over target). If TYR meets the UBS target it will return approximately 27% (excluding dividends, fees and charges – negative figures indicate an expected loss).
