Australia's Tyro Payments' FY24 EBITDA beat of 'lower quality', Morningstar says

Tyro Payments

26/08/2024 22:56

** Analysts at Morningstar say Tyro Payments'  TYR.AX 
fiscal 2024 results slightly beat brokerage estimates, but the
beat was of "lower quality"
    ** Brokerage lowers fair value estimate to A$1.60/shr from
A$1.70/shr for the business support services provider
    ** TYR reported FY24 EBITDA of A$55.7 mln ($37.71 mln),
increasing 31.6% from the prior year
    ** Morningstar says underlying EBITDA beat mainly driven by
higher-than-expected merchant fees, interest income, and
corporate segment income
    ** TYR's revenue-maximizing measures dampened volumes
-brokerage
    ** "We see strong growth prospects from increasing
penetration into a broadening addressable market ... likely
to be backed by further bolt-on acquisitions ... and the
structural shift toward electronic payments" - Morningstar
    ** Stock down 0.5% YTD, as of last close

($1 = 1.4769 Australian dollars)

 (Reporting by Shivangi Lahiri in Bengaluru)
 ((shivangi.lahiri@thomsonreuters.com))