Australia's Tyro rises; Morningstar backs co's strategy despite CEO resignation plans

Tyro Payments

06/06/2025 02:08

Updates

** Shares of Tyro Payments TYR.AX rise 4.3% to A$0.855, eye their strongest trading session since May 7, if gains hold

** Morningstar believes growth forecast for the payments firm remains intact despite CEO Jon Davey's potential resignation

** Brokerage sees Tyro announcing new product rollouts, expansion into markets and use of its banking license to complement merchant acquiring operations

** Morningstar does not see a material shift in Tyro's business strategy with CEO leaving

** Alignment between board and Davey on strategic priorities suggests that successor likely to continue executing the firm's current plans, rather than pursuing a change in direction - Morningstar

** Brokerage maintains A$1.3 fair value estimate, with shares currently screening as undervalued

** Adds that it continues to see good growth potential as Tyro expands its footprint, despite flagging that CEO resignation might disappoint some investors

** Stock up 4.9% YTD, including the day's moves

 (Reporting by Rishav Chatterjee and Nikita Maria Jino in Bengaluru)

 ((Rishav.Chatterjee@thomsonreuters.com;))