The broker views Tyro as a cyclical as well as structural story, and the results, and lowered second half outlook, confirm a period of
weaker turnover and total transaction value ahead.
But Tyro continues to focus on improving efficiency, which is pushing earnings and cash flow higher, notwithstanding cyclical headwinds.
The key debate, Morgan Stanley suggests, is what is the sustainable earnings margin for Tyro, as a relatively small player (5% market share) operating in the very competitive terminals/payments space in
Equal-weight retained. Target falls to
Sector: Software & Services.
Target price is
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