2 ASX fintech shares that could rocket this year

Payment tech suppliers could revel in the post-pandemic economic recovery. These 2 stocks are right in the box seat.

| More on:
Fintech tablet display in 3D

Image Source: Getty Images

Recent weeks have been confusing for investors of financial and technology ASX shares.

As COVID-19 Omicron put a spanner in our plans to reach post-pandemic life, the S&P/ASX 200 Financials (ASX: XFJ) has dropped 2.8% and the S&P/ASX All Technology Index (ASX: XTX) has calamitously plunged more than 14% since mid-November. 

But no 2 businesses are the same, so such sector-wide declines can sometimes mean individual ASX shares might be selling at a bargain.

“Many good companies are oversold,” said market commentator Peter Switzer on his Switzer TV Investing show.

The Switzer team recently analysed broker predictions for various ASX fintech shares.

This allowed them to pick out 2 ASX shares in the payment tech area that professional investors think have massive upside potential:

‘Good things come to those who wait’ 

Tyro Payments Ltd (ASX: TYR) shareholders have torn their hair out seeing the stock plunge 37% since the start of November.

The fintech shares fell 15% in one day at one stage.

They would feel like 2022 is starting the same way as 2021, when they had to watch the company scramble to service customers with “bricked” payment terminals.

But Switzer’s research showed analysts are confident that Tyro can turn it around from here.

On average, the brokers saw a remarkable 63% upside in the stock price. Morgan Stanley was the most confident, betting that Tyro shares would soar 86%.

Tyro shares fell another 1.53% on Tuesday to close at $2.58.

“Sometime this year these stocks will benefit from a rotation back into the tech and payment sector,” said Switzer.

“But you’ll have to have patience… Good things come to those who wait.”

Fighting Irish 

Similarly, EML Payments Ltd (ASX: EML) shares have had a shocking 12 months but analysts firmly back a 2022 revival.

The EML stock price has lost more than 43% since last May.

The company had been fighting regulatory issues in Ireland, which seems to have stabilised now.

Brokers on average are seeing a 29.1% upside to the EML share price.

UBS is the most bullish, salivating at a 41% price target for the payments technology provider.

Thematically both EML and Tyro could benefit from continued post-pandemic economic revival.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended EML Payments and Tyro Payments. The Motley Fool Australia owns and has recommended EML Payments. The Motley Fool Australia has recommended Tyro Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Financial Shares

A man wearing glasses and a purple vest holds his hand to his chin and wonders why the Pendal share price is falling today
Financial Shares

Why was the Pendal share price in freefall on Thursday?

Pendal shares went ex-dividend today and investors will receive their interim payment on 1 July.

Read more »

A businesswoman in a suit and holding a briefcase marches higher as she steps from one stack of coins to the next.
Financial Shares

Why is the Magellan share price marching higher today?

Magellan launched Barrenjoey in September 2020. Barclays invested $45 million in the start-up at the time.

Read more »

A man reacts with surprise when her see a bargain price on his phone
Financial Shares

2 ASX shares with prices ‘far too low’ right now: Forager

Prominent fund explores why this pair of finance stocks will perform well and how 'the fear is overdone'.

Read more »

Young boy with glasses in a suit sits at a chair and reads a newspaper.
Financial Shares

What was the highest ever AMP share price?

AMP shares have been an infamous ASX performer in recent years. We take a look back through time.

Read more »

child in superman outfit pointing skyward, indicating a rising share price
Financial Shares

Why is the Magellan share price up 7% today?

Magellan shares are rocketing today, but why?

Read more »

A woman sits at her computer in deep contemplation with her hand to her chin and seriously considering information she is receiving from the screen of her laptop regarding the Xero share price
Broker Notes

Why does this broker see another 33% upside in the QBE share price?

The insurer looks set to deliver considerable upside, according to more than one broker.

Read more »

Rising arrow on a blue graph symbolising a rising share price.
Financial Shares

This ASX All Ordinaries share just leapt 7% on a $15 million share buyback

Money3 is returning value to shareholders.

Read more »

A woman researcher holds a finger up in happiness as if making the 'number one' sign with a graphic of technological data and an orb emanating from her finger while fellow researchers work in the background.
Financial Shares

Strategic Elements share price rockets 60% on ‘breakthrough’ news

What's causing this share to surge so high today?

Read more »