Morningstar backs Australia's Tyro's strategy despite CEO's stepping down plans

Tyro Payments

05/06/2025 21:06

** Analysts at Morningstar believe growth forecast for Australia's Tyro Payments TYR.AX remains intact despite CEO Jon Davey's intended resignation

** Brokerage sees the payments firm 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 - brokerage

** Brokerage maintains A$1.3 fair value estimate on company, 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 0.6% YTD

(Reporting by Rishav Chatterjee in Bengaluru)

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