To the disappointment of shareholders, the Tyro Payments Ltd (ASX: TYR) share price endured another negative session today. Interestingly, the deepening decline occurred despite there being no new announcements from the payments solutions company.
Unfortunately, the Tyro Payments share price finished 4.35% lower to $3.30 by the end of the day. As a result, the company's shares are now closer to their 52-week low than they are to their 52-week high.
With no news from the company itself, we'll need to dig deeper into what's going on.
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Analyst downgrades hit Tyro share price
It appears investors weren't done with selling down their Tyro shares today after its steep fall yesterday. For reference, the company held its annual general meeting (AGM) for FY22 yesterday.
At this event, management refrained from giving guidance and warned of increased expenses as it looks to expand operations. A 15% sell-off in the Tyro share price shortly followed.
Today, two brokers have shared a negative perspective on Tyro following its AGM.
Firstly, analysts at Jefferies pointed out a reduction in gross profit growth from 24% to 14% from July to October. Jefferies suggested this was likely due to lower terminal rental fees, among other things. Citing this, the analysts decreased their price target from $4.00 to $3.60. Yet, this target is still around 9% above the current Tyro share price.
Similarly, senior analyst Richard Coles from Morgans shared some concerns over the company's gross profits today. According to the note, Coles believes the FY22 gross profit forecast of $159 million is a stretch. For this reason, the Morgans team downgraded its FY22 and FY23 earnings per share (EPS) forecasts for Tyro by more than 10%.
Additionally, the broker reduced its Tyro share price target but retained its add rating — drawing on the company's potential long-term growth.
