What are your thoughts towards the TYR situation?

Hi Craig,

TYR is trading ~15% above Potentia’s opportunist $1.27 bid and we, like the market, can see other bids coming forth although its hard to 2nd guess where the board would be happy sellers after the stocks plunge from ~$4 in less than 12-months. The reasons we can see further bids are fairly straightforward:

1. Consolidation is the name of the game for TYR and its peers as the cost of capital rises.
2. The stocks still looks fairly cheap compared to levels scaled last year making it a logical target for someone looking for accelerated growth.
3. Tyro has a  big customer base, however it’s hardware is aging and this will be a cost moving forward.

MM can see limited downside for TYR from todays $1.45 but likewise its hard to see someone offering say $1.75 leaving us neutral for now. Consensus 12 month price target for TYR is $1.57, most of the main brokers are fairly neutral on TYR.

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Tyro Payments (TYR)

LAST UPDATED 12/10/2022 15:51

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Tyro Payments (TYR)

LAST UPDATED 12/10/2022 15:51