TSX runs higher on rate cut expectations
Investing.com - UBS raised its price target on Tyro Payments Limited (ASX:TYR) to AUD1.40 from AUD1.35 while maintaining a Buy rating, citing several positive trends despite modest growth guidance.
The payments company recently provided FY26 gross profit guidance of AUD230-240 million, implying 7% growth at the midpoint, which falls slightly below current consensus estimates at the high end of that range.
UBS noted that Tyro’s core transaction value turned positive with 5% growth in the fourth quarter of fiscal 2025, with that momentum continuing into July and August of the current fiscal year.
The firm highlighted several improving fundamentals, including reduced transaction value churn over the past six months, solid growth in the profitable core Health vertical, and early recovery signs in discretionary channels.
UBS also pointed to Tyro’s relatively sustainable cost base at current levels, suggesting good operating leverage as incremental gross profit flows through to the bottom line.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.