Could the Tyro share price be on the comeback trail?

Are Tyro shares bouncing back form the lows we saw last week?

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Key points

  • Many ASX tech shares have been savaged in recent months 
  • This includes payment terminal provider Tyro Payments 
  • But could the worst be over for Tyro shares? 

After yesterday’s falls, the Tyro Payments Ltd (ASX: TYR) share price is enduring another slight dip so far this Tuesday. At the time of writing, Tyro Payments shares are down 0.46% at $1.08 each.

It’s been a rough time for this payment terminal provider recently, no way around it. This is a company that is down more than 62% in 2022 so far, and down more than 70% over the past year, after all. We are a long way from the company’s 52-week high of $4.39 a share.

But since the new 52-week low of 99 cents per share that Tyro hit last Thursday, the company is now up more than 10%. So could this mean that Tyro Payments shares are on the comeback trail?

Tryo has had a rough time to be sure. The payments company has not escaped from the savage selling that many ASX tech shares have seen in recent weeks. That’s despite Tyro reporting some solid growth numbers for the first half of FY2022 back in February. These included a 30.6% increase in transaction value to $15.8 billion, as well as a 29.9% rise in revenues to $149.2 million.

Tyro has also been reporting a weekly COVID trading update to investors. The most recent of these was released yesterday. It showed that Tyro’s transaction volumes over April came in at $3.216 billion, a 43% increase on the $2.246 billion the company recorded in April 2021. For May year to date, it had recorded $29.07 billion in transactions, a 35% increase from the previous year’s $21.56 billion.

Is the Tyro share price going to bounce back?

So what’s next for Tyro Payments?

Well, as my Fool colleague Tristan covered back in March, brokers Ord Minnet and Morgans both rated Tyro shares as a buy following the release of its half-year earnings back in February. Even though both brokers noted that “margins and costs were worse than expected” in these results, they are both still expecting to see growth from Tyro going forward.

So that’s what two ASX brokers reckon. But only time will tell if the Tyro share price has finally turned a corner on its recent woes.

At the current Tyro share price, this ASX tech share has a market capitalisation of $558.6 million.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Tyro 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 Scott Phillips.

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