Morningstar cuts PT of Australia's Tyro Payments; sees profit by 2025

Tyro Payments

10/01/2023 05:13

** Morningstar trims fair value estimate of Australia's Tyro
Payments  TYR.AX  to A$2.60 per share from A$2.80
    ** Says co's pace in improving market share in core health,
hospitality and retail verticals has slowed
    ** Brokerage says cost cuts undertaken to improve
profitability might suppress certain projects that could have
improved co's competitive position
    ** Regardless, brokerage sees TYR to become profitable and
generate maintainable free cash flows starting fiscal 2025 as
the co aims to "exit fiscal 2023 in positive free cash flow"
    ** Forecasts the payments terminal firm to grow transaction
volumes to A$93 billion ($64.18 billion) by FY2032
    ** Adds partnerships with other firms like Australia's
Telstra Group  TLS.AX  and broadening of customer segments
expected to help improve market share
    ** TYR shares are down 1.1% today
    ** Stock fell over 50% in 2022
($1 = 1.4491 Australian dollars)
 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))