Jefferies raises PT for Australia's Tyro Payments, expects breakeven in FY24

Tyro Payments

05/01/2023 22:16

** Jefferies increases price target for Australia's Tyro
Payments Ltd  TYR.AX  by 4% to A$1.20 from A$1.15, sees TYR
breakeven in FY24 on account of lower growth in operational
expenditure
    ** Additionally, brokerage cuts rating to "underperform"
says TYR is trading well above its valuation 
    ** Brokerage increases 1H23/FY23 Total Transaction Value
(TTV) to A$21 bln($14.18 bln)/A$42 bln, respectively, versus
A$16 bln / A$34 bln, respectively, a year ago, while co expects
TTV to be between A$40 bln and A$42 bln 
    ** Adds 1H23 /FY23 EBITDA increases to A$8 mln / A$23 mln
respectively from A$3 mln / A$11 mln respectively reported last
year, while co expects EBITDA to be between A$23 mln and A$29
mln
    ** Says it sees TYR as "fundamentally expensive", but
believes it may still have strategic value to a domestic or
international trade buyer 
    ** Three of 9 analysts rate the stock "buy" or higher, three
"hold" and three "sell" or lower; their median PT is A$1.39 –
Refinitiv Eikon data 
    ** TYR has lost more than half of its value in 2022
($1 = 1.4810 Australian dollars)
 (Reporting by Udbhav Krishna P)
 ((UdbhavKrishna.P@thomsonreuters.com;))