If you're eyeing the payments sector, Tyro Payments Ltd (ASX: TYR) and Zip Co Ltd (ASX: ZIP) are two major players you might have on your radar. Both are Aussie fintech companies making waves in digital transactions, but they take distinctly different approaches and have some big differences in their fundamentals. So, which payments stock is the better buy right now?

The case for Tyro Payments

Tyro Payments is a homegrown fintech that specialises in providing EFTPOS, business lending, and banking solutions, focusing largely on small to medium-sized businesses. According to its company profile, Tyro supports more than 76,000 Australian businesses, mainly serving the hospitality, retail, and healthcare sectors, and is gradually expanding into trades, accommodation, and services.

Looking at Tyro's latest figures, a few things jump out:

• It has a market cap of $364.73 million, making it much smaller than some sector peers.
• Its P/E ratio sits at 17.39, which is lower than Zip's.
• Tyro's earnings per share are $0.039.
• There's no dividend on offer at the moment, and franking data isn't available for this article.
• Its Year To Date (YTD) return is -31.8%, signalling it's had a rough year so far on the market.

While Tyro doesn't pay a dividend and isn't enjoying much momentum at the moment, its core business of merchant payment processing is critical to many Aussie SMEs and arguably less volatile than consumer-focused lending.

The case for Zip

Zip is best known for its Buy Now, Pay Later (BNPL) services, like Zip Pay and Zip Money. As of its latest public description, Zip is active across 12 countries, including Australia, New Zealand, and the United States. The company aims to disrupt traditional credit card models by offering flexible, interest-free payment solutions to consumers and merchants.

Key points from Zip's fundamentals:

• Market cap stands at a robust $2.79 billion.
• Its P/E ratio is 24.50, higher than Tyro's.
• Earnings per share are $0.091, noticeably higher than Tyro's.
• Zip doesn't pay a dividend either, so income investors will need to look elsewhere.
• The YTD return is -32.5%, so it has seen similar market pain as Tyro this year.

Zip's BNPL model has found global traction but also faces macro headwinds and regulatory scrutiny. Its focus is on consumers and merchants who want alternatives to credit cards, making it a different beast to Tyro's merchant-centric, bank-like model.

Valuation comparison

Tyro and Zip both trade on fundamentals that suggest they're growth-oriented fintechs, but there are meaningful differences in valuation and scale.

Note: Both companies list positive EPS figures, but their respective P/E ratios may be calculated using different measures of earnings (such as underlying or adjusted profit), which can explain why their P/E ratios and EPS numbers might not perfectly align on pure maths.

Neither company pays a dividend, so this is a straight-up growth story—no franking credits or yield to sway the decision. Zip's higher P/E ratio and much larger market cap point to higher market expectations, but also, perhaps, higher perceived risk or growth.

Recent share price performance

Share price performance has been on the struggling side for both companies this year, so it's not a story of momentum.

Comparing 25 August – 22 September 2026:

• Tyro's share price fell from $0.83 on 25 August 2026 to $0.69 on 22 September 2026, representing a drop of 16.9% over this period.
• Zip's share price fell from $2.66 on 25 August 2026 to $2.24 on 22 September 2026, a decrease of 15.8% across the same dates.
• Both have had a negative YTD return for 2026: Tyro at -31.8% and Zip at -32.5%.

Which is the better buy?

With both Tyro Payments Ltd and Zip languishing with negative returns in 2026 and neither paying a dividend, the decision comes down to business quality, growth potential, and valuation.

Personally, I'd lean toward Tyro Payments. Here's why: Tyro's lower P/E ratio suggests less frothy expectations from the market compared to Zip, so there may be less downside if sentiment stays cautious. Its business is deeply embedded with Australian merchants—a sticky and recurring revenue model. While Zip's international scope and higher EPS are attractive, the Buy Now, Pay Later sector faces increased competition and regulatory clouds, and Zip's higher valuation multiples reflect this more speculative trajectory.

Tyro is much smaller and arguably at an inflection point. If it can regain momentum, I think there's more recovery potential for share price upside. That said, both companies are high-risk, high-reward options in a sector subject to shifts in sentiment and disruptive innovation. Ultimately, my pick would be Tyro Payments for investors who prefer a merchant-driven, lower-expectation play in payments.

The post Tyro Payments vs Zip: Which ASX Payments Stock Wins? appeared first on The Motley Fool Australia.

What did Tyro Payments report?

• Gross profit increased 5.3% to $231.8 million
• EBITDA up 8.6% to $66.9 million
• Normalised profit before tax surged 40% to $24.7 million
• Free cash flow rose 49.5% to $29.4 million
• eCommerce volumes climbed 25%
• Number of banking accounts grew by 35%

What else do investors need to know?

Tyro continued its growth in priority markets, with Allied Health up 26% and Dental up 19%. The company reported merchant retention improvements and expanded into new enterprise and franchise customers such as Bakers Delight, Lune, and Drummond Golf.

In banking, deposits were up 27% and loan origination rose 19%. The acquisition of Thriday is set to broaden Tyro's accounting and financial management offering, aiming to increase the value from multi-product customers who tend to stay longer with the business.

What's next for Tyro Payments?

Tyro expects to build on its momentum, with forecast FY27 normalised gross profit between $240 million and $255 million and an EBITDA margin of 28.5% to 30.5%. The company is targeting further growth in SME relationships, enterprise wins, and solidifying its strong position in health, eCommerce, and banking.

Management highlighted Tyro's local focus as a differentiator, with the flexibility to invest in customer-centric capabilities, while maintaining financial discipline to drive long-term shareholder value.

Tyro Payments share price snapshot

Over the past 12 months, Tyro Payments shares have declined 27%, trailing the All Ordinaries Index (ASX: XAO), which has risen 1% over the same period.

View Original Announcement

The post Tyro Payments FY26: Earnings rise, growth outlook improves appeared first on The Motley Fool Australia.

This comes after the payments company welcomed the Reserve Bank of Australia (RBA)'s final reforms on card surcharging and merchant payment costs.

In midday trade, the Tyro share price is up 4% to 78 cents, after climbing as high as 80 cents before some profit-taking trimmed the gain.

The latest move follows an announcement that could strengthen the company's longer-term competitive position.

Why investors are cheering today

According to the release, Tyro welcomed the RBA's final reforms on card surcharging, interchange fees, and fee transparency across the payments sector.

The changes include a ban on surcharging for EFTPOS, Visa, and Mastercard transactions from 1 October 2026, alongside lower interchange caps and new disclosure requirements for larger payment providers from April 2027.

The RBA estimates the changes could save consumers and businesses a combined $2.5 billion each year.

Tyro said the reforms are in line with its expectations and will not affect its near-term financial guidance.

That is likely one of the main reasons the share price is moving higher, with investors viewing the regulatory changes as encouraging stronger competition across the merchant acquiring market.

Chief Executive Nigel Lee said the reforms represent "a win for consumers through lower payments costs, and a win for Australian small businesses through simpler and more transparent pricing".

He added that the changes also mark a structural shift away from surcharge-led and opaque bundled pricing, which could encourage merchants to reassess their payment providers.

Tyro already operates with clearer transaction pricing and vertical-specific payment solutions.

The company has 76,000 merchants on its platform and may be well placed if smaller businesses begin reviewing incumbent providers under the new framework.

Clear rollout dates support Tyro's outlook

Another supportive part of the update was the clear implementation timetable.

The RBA has confirmed that the surcharge ban and domestic interchange fee reductions will both begin on 1 October 2026, while the cap on foreign-issued cards and extra disclosure requirements for large acquirers will start from 1 April 2027.

That longer runway gives payment providers time to adapt systems, merchant communication, and pricing structures without disrupting current earnings expectations.

Lee said Tyro already operates cost-plus and card-based pricing models that align with the transparency objectives, adding that its systems and operational capability are already set up to support the reforms.

Despite today's share price rise, the stock is still down by more than 20% in 2026.

The post This ASX payments stock jumped after a key RBA decision appeared first on The Motley Fool Australia.

By comparison, the benchmark S&P/ASX 200 Index (ASX: XJO) rose 0.15%.

The financials index has fallen 9.5% since it peaked at a historical high of 9,978.4 points in October.

The steeply declining Commonwealth Bank of Australia (ASX: CBA) share price has contributed to the sector's fall.

Not to mention the sharp turnaround on interest rate expectations due to resurgent inflation and economic growth.

The markets are now pricing in a 27% chance of a rate hike after the next Reserve Bank meeting on 3 February.

Let's check out some new broker recommendations on ASX financial shares.

2 ASX financial shares to sell

On The Bull this week, experts reveal two ASX financial shares to sell now.

QBE Insurance Group Ltd (ASX: QBE)

The QBE share price closed at $19.15 on Thursday, down 0.1% for the day and down 18.3% over the past six months.

Jabin Hallihan from Family Financial Solutions has a sell rating on QBE.

Hallihan explains:

Shares [are] trading at a premium to our fair value estimate of $16.50, despite falling from its June highs.

In our view, the company faces margin pressure from pricing competition, so we recommend investors reduce holdings, while monitoring claims trends and premium rates.

Medibank Private Ltd (ASX: MPL)

The Medibank Private share price closed at $4.67 yesterday, up 0.21% for the day and up 23% in the year to date (YTD).

Blake Halligan from Catapult Wealth has a sell rating on the ASX financial share.

Halligan notes the stock's significant fall from $5.26 per share on 21 August.

He says:

The Federal Government is attempting to encourage private health insurers to increase payments to private hospitals.

Net profit after tax of $500.8 million in fiscal year 2025 was up a modest 1.7 per cent on the prior corresponding period.

Profit before tax of $728.8 million was up 2.4 per cent.

The risk of increasing cost pressures paints a challenging outlook.

1 ASX financial stock to buy

Tyro Payments Ltd (ASX: TYR)

The Tyro Payments share price closed at $1 on Thursday, up 0.5% for the day and up 21% in the YTD.

Hallihan has a buy rating on the ASX financial stock.

He explains:

The company reaffirmed fiscal 2026 guidance for normalised gross profit of between $230 million and $240 million and an EBITDA margin of between 28.5 per cent and 30 per cent.

Tyro is launching a new banking platform to boost merchant adoption. Tyro's modern technology and strong performance support growth.

Shares remain below our fair value estimate of $1.30, so we recommend accumulating the stock.

The post 2 ASX financial shares to sell and 1 to buy: experts appeared first on The Motley Fool Australia.

Shares in the payments company closed yesterday trading for $1.005. In late morning trade on Wednesday, shares are changing hands for 1.012 apiece, up 0.7%.

For some context, the ASX 300 is just about flat at this same time.

Today's outperformance is par for the course this year, with the Tyro share price up 21.2% in 2025, racing ahead of the 4.9% year-to-date gains posted by the benchmark index.

And looking ahead, Family Financial Solutions' Jabin Hallihan expects more outperformance from the ASX 300 tech share (courtesy of The Bull).

Here's why.

Should you buy Tyro Payments shares today?

"Tyro provides electronic payment solutions and banking services to Australian businesses," Hallihan said.

Citing the first reason he has a buy recommendation on the ASX 300 tech share, he said, "The company reaffirmed fiscal 2026 guidance for normalised gross profit of between $230 million and $240 million and an EBITDA margin of between 28.5% and 30%."

As for the second reason, Hallihan noted, "Tyro is launching a new banking platform to boost merchant adoption."

And the company has strong growth potential.

"Tyro's modern technology and strong performance support growth," Hallihan said.

And the fourth reason is that Tyro shares are trading more than 28% below Family Financial's fair value estimate.

"Shares remain below our fair value estimate of $1.30, so we recommend accumulating the stock. The shares were trading at $1.037 on December 4," Hallihan concluded.

What's the latest from the ASX 300 tech share?

Tyro Payments shares closed up 2% on 26 November, the day the company held its annual general meeting (AGM).

"We have made good progress against our strategic initiatives and in making Tyro a more profitable business," Tyro CEO Jon Davey said on the day.

Davey added:

In FY25, we increased our gross profit to $220.1 million, representing growth of 4.4% and we improved our EBITDA margin to 28.0%.

Today we are reaffirming our FY26 guidance, which is to generate between $230 million and $240 million of gross profit and an EBITDA margin of between 28.5% and 30%.

Looking to the growth opportunities for the ASX 300 tech share, Tyro chair Fiona Pak-Poy said, "We are exploring opportunities across three categories."

She continued:

The first is building greater payments scale, as the transaction with SmartPay offered.

The second is acquiring payments capabilities or software in support of our omnichannel offering, much like Medipass has done for Tyro Health.

The third category is banking, and we will explore opportunities to grow our banking book where there is strong payments overlap.

The post 4 reasons to buy this ASX 300 tech share today appeared first on The Motley Fool Australia.

Here's what they are recommending as buys:

Harvey Norman Holdings Ltd (ASX: HVN)

Sanlam Private Wealth thinks that investors should be buying retail giant Harvey Norman.

It likes the company's exposure to artificial intelligence-related products and improvements in consumer sentiment at this very important time of the year. It said:

Improving consumer sentiment favours this retail giant leading into the usually strong Christmas trading period. Electronics and furniture are expected to perform well, particularly in artificial intelligence-related products amid strong interest in the latest iPhone. HVN's franchising operations are enjoying robust pre-tax margins as costs remain well contained compared to last year. Aggregate sales for Australian franchisees increased 6.5 per cent between July 1 and November 20, 2025, when compared to the prior corresponding period.

Ramsay Health Care Ltd (ASX: RHC)

Over at Family Financial Solutions, it thinks that private hospital operator Ramsay Health Care could be an ASX share to buy.

It highlights that its shares trade at a deep discount to what it believes is fair value. Its analysts said:

Ramsay is one of Australia's largest private hospital operators. Strong fundamentals and margin recovery support long term growth. In Australia, RHC reported revenue growth of 6.5 per cent in the first quarter of 2026 compared to the prior corresponding period. Earnings before interest and tax rose 5.8 per cent. RHC expects EBIT growth in full year 2026. Ramsay's shares remain undervalued relative to our fair value estimate of $54, as we expect profitability to improve through higher indexation, digital efficiencies and easing wage pressures. The shares were trading at $37.23 on December 4.

Tyro Payments Ltd (ASX: TYR)

Family Financial Solutions also thinks that payments company Tyro could be an ASX share to buy.

As with Ramsay, it feels that Tyro Payments shares are significantly undervalued at current levels. It explains:

Tyro provides electronic payment solutions and banking services to Australian businesses. The company reaffirmed fiscal 2026 guidance for normalised gross profit of between $230 million and $240 million and an EBITDA margin of between 28.5 per cent and 30 per cent. Tyro is launching a new banking platform to boost merchant adoption. Tyro's modern technology and strong performance support growth. Shares remain below our fair value estimate of $1.30, so we recommend accumulating the stock. The shares were trading at $1.037 on December 4.

The post Analysts name 3 ASX shares to buy this week appeared first on The Motley Fool Australia.

That's because exchange traded funds (ETFs) are here to save the day by allowing you to purchase large groups of shares with a single click of the button.

And to narrow things down for you, the team at Bell Potter has picked out two Australian ETFs that it thinks would be great picks for investors looking for domestic share market coverage.

Let's see which funds it is recommending to clients:

Vanguard Australian Shares Index ETF (ASX: VAS)

The first Australian ETF for investors to consider is the Vanguard Australian Shares Index ETF.

This popular fund offers exposure to the ASX 300 index, which is home to 300 of the largest and most liquid shares on the Australian share market.

This means that you would be buying a slice of giants like BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA), as well as smaller names like Universal Store Holdings Ltd (ASX: UNI) and Tyro Payments Ltd (ASX: TYR).

The beauty of this is that you get a good representation of the Australian share market and its dividend culture. For example, at the last count, it was trading with a dividend yield of 3.1%. That's better than some savings accounts these days.

Commenting on why it thinks this ASX ETF is one of the best to buy, Bell Potter said:

We like VAS as a method of gaining broad market exposure to the ASX. Vanguard is a best-in-class ETF issuer in our view, ensuring optimal portfolio replication, high liquidity and reputable corporate action management.

Vanguard MSCI Australian Small Companies Index ETF (ASX: VSO)

Another Australian ETF that the broker is positive on is the Vanguard MSCI Australian Small Companies Index ETF.

As you might have guessed from its name, this fund targets the smaller end of the share market.

Bell Potter highlights that the ETF is invested in a portfolio of Australian small cap companies, which creates an efficient mechanism to capture their long term performance. It points out that the index it tracks captures the smallest 14% of the Australian equity universe by free float market capitalisation.

Given how some analysts believe that small caps are set for a strong period as interest rates rise, it could be a good time to consider this fund. Bell Potter concludes:

VSO provides a simple, low-cost method to develop an allocation to small and mid cap equities. [..] Smaller companies typically have greater growth potential than large caps given they are often in an earlier stage of their growth cycle. Growth in these companies can enhance overall portfolio returns.

The post Bell Potter names 2 of the best Australian ETFs to buy appeared first on The Motley Fool Australia.

Listed below are three ASX shares that Morgans thinks are top buys this month. Here's what the broker is saying about them:

Accent Group Ltd (ASX: AX1)

Morgans believes this footwear focused retailer could be an ASX share to buy.

Although its FY 2025 result wasn't flash, it was in line with guidance. And with its sales turning positive early in FY 2026, the broker appears to see now as the time to buy. It said:

AX1's FY25 result was at the upper end of guidance with EBIT largely flat on the pcp. Sales turned negative in the 2H, and gross margins were weak driven by the highly promotional environment. Sales in the first 7 weeks of FY26 have turned positive and AX1 has provided guidance for FY26, expecting high single digit EBIT growth. AX1 plans to open 30 stores and 4 Sports Direct Stores, the first one opening in November in Melbourne. We have lowered our EBIT FY26 by 2%, with FY27 EBIT largely unchanged. This has been driven by lower store openings, higher gross margins, offset by lower costs.

Morgans has a buy rating and $1.65 price target on its shares. This implies potential upside of 21% from current levels.

HMC Capital Ltd (ASX: HMC)

Another ASX share that gets the thumbs up from Morgans is diversified investment company HMC Capital.

The broker feels that its shares are cheap at current levels and sees potential for big returns over the next 12 months. It said:

With fires on multiple fronts (Health, Digital, Energy), HMC's outlook necessitates a period of consolidation, albeit real estate (equity / credit) can likely see FY26 FUM continue to grow. We see a conclusion to Healthscope negotiations (c.2H26) would put a floor on HCW; a material lease could get DGT back ontrack: while a sell-down and de-gearing of the Energy Transition Fund would provide external validation of value – all critical in restoring investor faith. At $3.27/sh, HMC screens cheap on both a multiple of earnings basis and relative to book value. The current price essentially implies that HMC is ex-growth with a questionable NTA – a view we do not share. So, whilst re-rating of the stock remains contingent on these elements coming to fruition, we believe it to be highly achievable over the next 12 months.

Morgans has a buy rating and $4.20 price target on its shares. This suggests that upside of almost 20% is possible between now and this time next year.

Tyro Payments Ltd (ASX: TYR)

Finally, payments company Tyro Payments is also being tipped as one to buy by Morgans.

It may have disappointed the market in FY 2025 but the broker remains positive. Especially given its improving margins. It said:

TYR's FY25 result was slightly below consensus expectations (-1%-2%) at revenue (A$486m) and EBITDA (A$61.5m), but more in line at NPAT (A$17.6m).  We saw this as a solid result overall, with continuing EBITDA margin improvement arguably the key positive highlight. We lift our normalised PBT forecasts by +15%/+5% over the next two years, mainly on higher EBITDA margin assumptions. We note our EPS forecasts are +15%/-26% over the same timeframe, with our FY27 forecast impacted by TYR beginning to pay tax (which is slightly earlier than we thought).

Morgans has a buy rating and $1.67 price target on its shares. This implies potential upside of almost 40%.

The post Morgans says these ASX shares could rise 20% to 30% appeared first on The Motley Fool Australia.

Let's now take a look at two that it remains positive on and one that it thinks investors should be avoiding. Here's what it is recommending:

Fortescue Ltd (ASX: FMG)

This iron ore giant may have delivered a "healthy" result in FY 2025, but that wasn't enough for Morgans to stop it from downgrading its shares.

The broker believes that its valuation is stretched and has downgraded its shares to a trim rating with a $19.00 price target. It said:

Healthy FY25 result, although dividend payout now constrained despite strong hematite margins. Iron Bridge contribution still modest and costly, with realisation risk persisting at 84%. Underlying EBITDA beat consensus +2%, while NPAT was -3%. At ~A$19/share, valuation stretched, leaving limited upside without either higher iron ore prices or a pivot in strategy. We downgrade to TRIM.

Nanosonics Ltd (ASX: NAN)

Morgans was pleased with the infection prevention company's FY 2025 results, highlighting that they were stronger than expected.

And with the Trophon business continuing to perform positively and showing signs of operating leverage, the broker sees lots of value on offer with its shares. As a result, it has retained its buy rating and $5.50 price target on them. It said:

FY25 result was a beat to expectations, supported by strong consumables growth and capital sales growth. Key short-term focus remains installed base growth which beat our pass-mark (>2k units), and early signs of upgrade cycle acceleration across the ageing fleet in North America.

Commentary around CORIS launch remains positive and potentially conservative, with phased commercial rollout expected now in FY27 followed by broader adoption in FY28. Timing hinges on FDA 510(k) approvals which we have seen recent evidence of backlog and delays to approvals. However, we view CORIS timing arbitrary over the life-cycle of the device and particularly so with the Trophon business humming along and showing strong operating leverage. No change to positive view or valuation. Target price of A$5.50 remains.

Tyro Payments Ltd (ASX: TYR)

Another ASX share that gets the seal of approval following its results release is payments company Tyro.

While its results were slightly softer than expected, it still believes it was a "solid" outcome. Particularly given its margin improvements.

As a result, the broker has retained its buy rating with an improved price target of $1.67. It said:

TYR's FY25 result was slightly below consensus expectations (-1%-2%) at revenue (A$486m) and EBITDA (A$61.5m), but more in line at NPAT (A$17.6m).  We saw this as a solid result overall, with continuing EBITDA margin improvement arguably the key positive highlight.

We lift our normalised PBT forecasts by +15%/+5% over the next two years, mainly on higher EBITDA margin assumptions. We note our EPS forecasts are +15%/-26% over the same timeframe, with our FY27 forecast impacted by TYR beginning to pay tax (which is slightly earlier than we thought). Our price target rises to A$1.67 (from A$1.55). With ~40% upside to our price target (A$1.67), we maintain a BUY rating.

The post Forget Fortescue and buy these ASX shares appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back are listed below. Here's why they are rising:

Amotiv Ltd (ASX: AOV)

The Amotiv share price is up 4.5% to $9.61. Investors have been buying this automotive parts company's shares following the release of its full year results. Amotiv reported a 1% increase in revenue to $997.4 million and a 1.2% lift in underlying EBITDA to $226.4 million. And even though management warned that FY 2026 is "likely to remain a challenging environment", it expects to deliver modest earnings growth year on year.

Evolution Mining Ltd (ASX: EVN)

The Evolution Mining share price is up 4% to $8.02. This gold miner's shares are racing higher today after it impressed with its full year results. Evolution Mining reported a 99% increase in underlying net profit to a record of $958 million. Evolution's CEO, Lawrie Conway, said: "The record financial performance in FY25 was achieved through safely delivering to plan across all of our operations. This is a great credit to the efforts of our employees and contractors who I sincerely thank for their achievements. Our cost and production performance in the year saw our balance sheet continue to strengthen, with gearing levels falling while successfully delivering several major capital projects."

Life360 Inc (ASX: 360)

The Life360 share price is up a further 5% to $42.92. Investors have been buying this location technology's shares after brokers responded positively to its second quarter results. One of those was Bell Potter, which has retained its buy rating with an improved price target of $47.50 (from $37.50). It said: "We have increased the multiples we apply in the EV/Revenue and EV/EBITDA valuations from 9.5x and 55x to 12.5x and 62.5x and also reduced the WACC we apply in the DCF from 8.5% to 8.3% due to the strong result and better-than-expected operating leverage. The net result is a 27% increase in our PT to $47.50 which is >15% premium to the share price so we maintain the BUY recommendation. Potential catalysts include a strong 3Q2025 result and potential further upgrade in the guidance."

Tyro Payments Ltd (ASX: TYR)

The Tyro Payments share price is up 9% to $1.17. Investors have been buying this payments company's shares after it revealed that it has received takeover interest, but not at a level that it believes would represent good value.

The post Why Amotiv, Evolution Mining, Life360, and Tyro shares are charging higher today appeared first on The Motley Fool Australia.

That's because the team at Morgans has recently put buy ratings on them and is tipping them to rise very strongly. Let's see what the broker is recommending to clients:

Catalyst Metals Ltd (ASX: CYL)

Morgans thinks that this gold miner could be an ASX share to buy. It has put a buy rating and $6.93 price target on its shares. This implies potential upside of 43% for investors from current levels.

Commenting on its upgrade, the broker said:

Ahead of the June quarter results we update our model to account for the recent Old Highway acquisition as well as adjustments to quarterly and FY26 forecasts. With the majority of ASX gold producers reporting unit costs to the upper end of our forecasts, we adjust our cost estimates to reflect the broader upward trend across the gold space. We upgrade CYL to a BUY recommendation (previously ACCUMULATE). Our target price moves to A$6.93ps (from A$7.15ps) as a function of unit cost adjustments.

Tyro Payments Ltd (ASX: TYR)

Another ASX share that gets the thumbs up from Morgans is payments company Tyro Payments.

The broker recently put a buy rating and $1.55 price target on its shares. Based on its current share price of 99 cents, this suggests that upside of approximately 56% is possible between now and this time next year.

Morgans thinks that share price weakness caused by the RBA's plan to ban credit card surcharges has been an overreaction. It said:

The Reserve Bank of Australia (RBA) has released a Consultation Paper as part of its Review of Merchant Card Payment Costs and Surcharging.  With management adamant the regulatory changes won't impact TYR's profitability, we think risks from surcharging changes have been overstated. We make no alterations to our earnings or price target in this note. We continue to see TYR as unvalued and with >20% upside to our PT (A$1.55), we maintain our BUY recommendation.

Polynovo Ltd (ASX: PNV)

Finally, this medical device company could be an ASX share to buy according to Morgans. Though, only for investors with a high tolerance for risk.

Morgans has a speculative buy rating and $2.11 price target on its shares. This implies potential upside of almost 30% for investors from current levels.

Commenting on its valuation, the broker said:

We have updated our PNV forecasts ahead of the FY25 result. We have made no changes to our FY25 forecasts; however, our gross margin has decreased, and regulatory and new market development costs have increased in FY26 and FY27. As a result, our DCF valuation has decreased to A$2.11 (was A$2.25), although the discount applied to the valuation has reduced to 20% from 25%, leaving our target price unchanged at $1.69. We maintain a SPECULATIVE BUY recommendation on PNV.

The post Morgans says these ASX can rise 30% to 50% appeared first on The Motley Fool Australia.

Three that have fared well and been given buy ratings are listed below. Here's why the broker is bullish on these names:

CSL Ltd (ASX: CSL)

This biotherapeutics company's shares could be "materially undervalued" according to the team at Morgans.

The broker highlights that this high-quality company is trading on significantly lower than normal multiples at present. This is despite many analysts forecasting double-digit earnings growth in the coming years.

Commenting on the ASX stock, the broker said:

We view CSL as materially undervalued, trading on an EV/EBIT of 18.2x, more than 25% below its 10-year average (24.7x). Based on a conservative SOTP valuation, we estimate fair value of A$196bn, implying c35% upside from current trading levels. Notably, the market appears to be valuing CSL on less than a single division, with a c10% discount to the core Behring business alone, while effectively assessing zero or negative value to Seqirus and Vifor. We adjust our underlying earnings estimates lower by c4%, mainly on lower sales assumptions in Seqirus and Vifor.

Morgans has a buy rating and $303.70 price target on its shares.

Regal Partners Ltd (ASX: RPL)

Another ASX stock that gets the seal of approval from Morgans this week is fund manager Regal Funds.

Its analysts believe the company's shares are great value at current levels. Especially given its strong balance sheet and growing funds under management (FUM). It said:

In this note we update our earnings estimates to reflect 1HCY25 performance fees, along with our expectations for a slight moderation in the funds management margin and an increased non-controlling interest charge (vs prior expectations). Trading at a PER of 14x (CY26), with a strong balance sheet and capacity to continue growing FUM, we retain our Add rating with a price target of $3.30/sh.

Morgans has an add rating and $3.30 price target on Regal Partners' shares.

Tyro Payments Ltd (ASX: TYR)

A third ASX stock to have been given a buy rating this week is payments company Tyro Payments.

The broker believes that proposed changes to card surcharges are not going to impact Tyro's profitability. As a result, it feels that recent share price weakness is a buying opportunity.

The Reserve Bank of Australia (RBA) has released a Consultation Paper as part of its Review of Merchant Card Payment Costs and Surcharging.  With management adamant the regulatory changes won't impact TYR's profitability, we think risks from surcharging changes have been overstated. We make no alterations to our earnings or price target in this note. We continue to see TYR as unvalued and with >20% upside to our PT (A$1.55), we maintain our BUY recommendation.

Morgans has a buy rating and $1.55 price target on its shares.

The post Morgans names 3 ASX stocks to buy appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back are listed below. Here's why they are rising:

DroneShield Ltd (ASX: DRO)

The DroneShield share price is up a further 4% to $3.87. This counter drone technology company's shares have been on fire this week after it announced a major increase to its research and development capabilities. Management revealed that it will make a $13 million+ initial investment into a brand new 3,000sqm production facility in Sydney's Alexandria. This will expand its own annual production capacity to $900 million by mid-2026 and a combined total annual manufacturing capacity to $2.4 billion by the end of 2026. DroneShield shares are now up over 400% since the start of the year.

Meteoric Resources NL (ASX: MEI)

The Meteoric Resources share price is up 12% to 15.7 cents. This is despite there being no news out of the mineral exploration company. However, it is worth noting that rare earths shares are racing higher again today after Apple (NASDAQ: AAPL) announced a US$500 million deal With MP Materials (NYSE: MP). This will see the two parties develop a recycling line for rare earth materials. Meteoric Resources' flagship Caldeira Rare Earth Ionic Clay Project is the world's highest grade ionic absorption rare earth deposit.

Mount Gibson Iron Ltd (ASX: MGX)

The Mount Gibson Iron share price is up 7% to 32.2 cents. Investors have been buying the miner's shares after it announced its expansion into gold. Mount Gibson has signed a binding conditional agreement with Northern Star Resources Ltd (ASX: NST) to acquire its 50% interest in the Central Tanami Project Joint Venture (CTPJV) in the Northern Territory. Mount Gibson Iron is paying $50 million for the stake. The company's CEO, Peter Kerr, said: "This acquisition represents a compelling opportunity to enter the gold sector at an attractive price, with the sector having strong fundamentals. Involvement in the Central Tanami Gold Project provides Mount Gibson with an opportunity to leverage the success of its Koolan Island iron ore operation to establish the foundations of a gold production business."

Tyro Payments Ltd (ASX: TYR)

The Tyro Payments share price is up almost 5% to 93.7 cents. This payments company's shares are rebounding on Wednesday after tumbling yesterday amid concerns over the RBA's plan to scrap card surcharge fees. Tyro's CEO, Jon Davey, doesn't believe this is bad news. He said: "We welcome the RBA's proposed payments updates, which aim to increase transparency and lower card costs for consumers and merchants. The RBA's proposal supports a holistic view of payments reform that benefits small businesses and creates opportunities for Tyro. We encourage the RBA to move with speed."

The post Why Droneshield, Meteoric Resources, Mount Gibson, and Tyro shares are charging higher appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:

Cromwell Property Group (ASX: CMW)

The Cromwell Property Group share price is down 2.5% to 36.5 cents. This follows the release of an update on the Barton development project. According to the release, the anticipated total cost of the development is $201 million. This includes land, construction costs, fees, finance costs, and a tenant incentive, which it notes is commensurate with the market and to be taken in instalments during the delivery of the project. The projected yield on cost for the development is expected to be greater than 6.3%.

Metcash Ltd (ASX: MTS)

The Metcash share price is down almost 3% to $3.91. This has been driven by the wholesale distributor's shares going ex-dividend this morning. Last month, Metcash released its full year results and reported a 10.1% increase in statutory profit after tax to $283.3 million. This allowed the company's board to declare a fully franked final dividend of 9.5 cents per share. Eligible shareholders can now look forward to receiving this payout late next month on 27 August.

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price is down 2.5% to $1.61. Investors have been selling this lithium miner's shares despite there being no news out of it. However, it is worth noting that its shares have been on fire in recent weeks, so this could mean that some investors are taking a bit of profit off the table today. Despite today's decline, Pilbara Minerals shares are still up 23% since this time last month. Though, they remain down a disappointing 46% over the past 12 months due to weak lithium prices.

Tyro Payments Ltd (ASX: TYR)

The Tyro Payments share price is down 5% to 87.2 cents. This may have been driven by news that the RBA is looking to scrap card surcharges. This morning, the central bank noted that it has reached the preliminary view that it would be in the public interest to "remove surcharging on eftpos, Mastercard and Visa cards." It then highlights: "Removing surcharging would make card payments simpler, more transparent and help to increase competition in the card payments system."

The post Why Cromwell Property, Metcash, Pilbara Minerals, and Tyro shares are falling today appeared first on The Motley Fool Australia.

Three top ASX shares that leading brokers have named as buys this week are listed below. Here's why they are bullish on them:

AMP Ltd (ASX: AMP)

According to a note out of Citi, its analysts have retained their buy rating on this financial services company's shares with an improved price target of $1.65. The broker has been looking into AMP's new digital only bank offering and is positive on its outlook. In fact, it appears to see it as the key to improving the returns from its struggling banking business. Outside this, the broker has boosted its earnings for AMP to reflect mark to market changes. The AMP share price is trading at $1.48 on Monday afternoon.

Champion Iron Ltd (ASX: CIA)

A note out of Bell Potter reveals that its analysts have retained their buy rating on this iron ore miner's shares with a trimmed price target of $5.40. Bell Potter is expecting a reasonably solid quarterly update from Champion Iron later this month. It is forecasting production of 3.5Mt and sales of 3.7Mt. This will be up from 3.2Mt and 3.5Mt, respectively, over the previous quarter. In addition, the broker highlights that FY 2026 will be a transition year for the company. It believes its shift into higher grade production from 2026 will support improved prices and earnings amid an iron ore price environment generally expected to weaken. It also expects its free cash flow to improve from 2026 with major capital programs completed. This should be supportive of generous dividends for the foreseeable future. The Champion Iron share price is fetching $4.63 at the time of writing.

Tyro Payments Ltd (ASX: TYR)

Analysts at Morgans have retained their buy rating on this payments company's shares with a trimmed price target of $1.55. According to the note, the broker has been busy updating its earnings estimates in the financial sector after marking to market recent movements. It is expecting a solid result for Tyro Payments in FY 2025. The broker is forecasting an increase in EBITDA to $66 million for the year. In light of this, Morgans thinks that its shares are being undervalued by the market at just 6 times EV/EBITDA. As a result, it sees a favourable risk/reward on offer for investors at present. The Tyro Payments share price is trading at 92 cents today.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

In morning trade, the Smartpay Holdings Ltd (ASX: SMP) share price is up 12% to $1.05.

This compares to a 0.95% decline by the All Ordinaries index.

Why is this ASX All Ords stock jumping?

Investors have been scrambling to buy the company's shares after it accepted a takeover offer from US-based payments company Shift4 Payments.

Shift4 provides integrated payments solutions and commerce technology, processing over US$260 billion in transactions each year in over 45 countries and servicing more than 200,000 customers across more than 100 payment methods.

According to the release, the two parties have entered into a scheme implementation agreement which will see Shift4 acquire all Smartpay shares for NZ$1.20 (A$1.11) per share in cash.

This deal values Smartpay's equity at around A$274 million, with an enterprise value of approximately A$283 million.

Premium offer

The release notes that the NZ$1.20 per share offer represents a 46.5% premium to the ASX All Ords stock's 90-day volume weighted average price (VWAP) of NZ$0.82. It also implies an acquisition multiple of roughly 14.2 times FY 2025 normalised EBITDA, which excludes NZ investment costs.

Shift4 declared the offer as its "best and final price" unless a competing proposal emerges.

The ASX All Ords stock's board has unanimously recommended that shareholders vote in favour of the scheme. This is subject to an independent expert's report and there being no superior proposals.

The company's largest shareholder, Microequities Asset Management (ASX: MAM), which controls approximately 13.3% of Smartpay shares, has expressed support for the deal and intends to vote in its favour.

Smartpay's CEO, Marty Pomeroy, commented:

Smartpay remains focused on being the payments partner of choice, investing and adding scale to our existing Australian and New Zealand business. The proposed transaction, if completed, will see Shift4 partner with Smartpay to deliver an enhanced value proposition to our customers, employees and other stakeholders while delivering immediate and derisked value to our current shareholders.

What happens next?

The transaction is subject to several conditions. This includes shareholder approval, clearance under the New Zealand Overseas Investment Act, and final approval by the New Zealand High Court. A special meeting of shareholders is expected to take place in the third quarter of 2025.

Tyro Payments Ltd (ASX: TYR) shares are tumbling today on the news. It had been interested in acquiring Smartpay and even tabled its own NZ$1.20 per share offer earlier this year.

The post Which ASX All Ords stock is rocketing on takeover news? appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

Qantas Airways Ltd (ASX: QAN)

The Qantas share price is down 3% to $10.41. This may have been driven by the release of the details of the Virgin Australia IPO yesterday. According to the term sheet, the airline will be offering its shares at $2.90 per share. This values the company at $2.32 billion. It is possible that some investors are taking profit on Qantas shares and looking to invest in this IPO now. The Qantas share price is up almost 70% since this time last year.

Resimac Group Ltd (ASX: RMC)

The Resimac share price is down 12% to 89 cents. This has been driven by the non-bank lender's shares going ex-dividend this morning for its special divided. Earlier this week, Resimac announced plans to pay shareholders a fully franked special dividend of 12 cents per share. This decision follows a comprehensive strategic review of its operating assets and capital requirements, which found that surplus capital was not essential for supporting its strategic objectives. Resimac will be paying this dividend later this month on 23 June.

Tyro Payments Ltd (ASX: TYR)

The Tyro Payments share price is down 10% to 82.5 cents. Investors have been selling this payments company's shares following news that its CEO is leaving. According to the release, Tyro's CEO and Managing Director, Jon Davey, is stepping down after accepting the CEO role at a private equity backed business. He said: "It's been a privilege to lead Tyro. I'm proud of what we've achieved and confident in the company's future. I remain fully committed to supporting the business and ensuring a seamless handover to the next CEO."

Washington H Soul Pattinson and Company Ltd (ASX: SOL)

The Soul Patts is down 3% to $40.14. This appears to have been driven by profit taking from investors after some very strong gains this week. Investors were buying the investment company's shares following news that it is merging with building products company Brickworks Ltd (ASX: BKW). Commenting on the deal, Soul Patts CEO, Todd Barlow, said: "Merging Soul Patts with Brickworks makes a lot of strategic and financial sense. It simplifies the structure, adds scale, and creates a more investable company. In many ways Soul Patts and Brickworks have evolved together and shared in the capital stability provided by our cross-shareholding over the past 56 years."

The post Why Qantas, Resimac, Tyro, and Soul Patts shares are falling today appeared first on The Motley Fool Australia.

At the time of writing, the ASX 300 share is down 17% to 76 cents.

As a comparison, the S&P/ASX 300 index is up 0.1% at the time of writing.

Why is this ASX 300 share crashing?

Investors have been hitting the sell button today after the payments company announced the shock exit of its CEO and Managing Director, Jon Davey.

According to the release, Davey has announced his intention to step down after accepting the CEO role at a private equity backed business. The company notes that the new role is based in Melbourne where he lives and is outside of the financial services sector.

Davey won't be leaving immediately. He will continue in his current role with the ASX 300 share for up to six months to support a smooth transition while an executive search process is undertaken.

It was only a short reign for the outgoing CEO. He joined Tyro in 2021 through the acquisition of Medipass, where he served as its CEO. Davey was then appointed CEO of Tyro in September 2022, which means he has been at the helm for less than three years.

Unfortunately, it has been a disappointing period for the company and its shareholders during his leadership. Since his appointment on 15 September 2022, the Tyro Payments share price has lost 80% of its value.

Commenting on the CEO's exit, the ASX 300 share's chair, Fiona Pak Poy, said:

Jon has made a substantial contribution to Tyro leading the company through a period of significant transformation. He has cultivated a high-performance culture, executed with focus, and laid the foundations for sustainable growth.

Jon leaves the company in excellent shape, with a strong leadership team committed to delivering our growth strategy for FY26 and beyond, including the expansion of the health business and banking proposition and entry into new verticals including aged care and pet insurance. On behalf of the Board, I thank Jon for his leadership and commitment.

Speaking about his exit, outgoing CEO Jon Davey adds:

It's been a privilege to lead Tyro. I'm proud of what we've achieved and confident in the company's future. I remain fully committed to supporting the business and ensuring a seamless handover to the next CEO.

Following today's decline, Tyro Payments' shares are down 8% since the start of the year.

The post Guess which ASX 300 share is crashing 17% on shock news appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back are listed below. Here's why they are rising:

4DMedical Ltd (ASX: 4DX)

The 4DMedical share price is up 5% to 31 cents. Investors have been buying this medical technology company's shares following the release of an update. According to the release, the company has signed a commercial contract with Intermountain Health for the implementation of its recently FDA-cleared Pulmonary Hypertension Analysis product. The company's CEO, Andreas Fouras, said: "As the contract transitions to full commercial terms this revenue stream will become meaningful for us. Furthermore, under those terms we can grow revenue through increased usage of PHA and expansion to other products in the portfolio, further growing the opportunity within this large health system."

Gold Road Resources Ltd (ASX: GOR)

The Gold Road share price is up almost 10% to $3.26. This follows news that the gold miner has accepted a takeover offer from Gold Fields Ltd (NYSE: GFI). The deal will see Gold Road shareholders receive the equivalent of $3.40 per share (less any special dividend paid prior to implementation of the scheme). This includes a variable cash consideration equal to the full value of their proportionate holding in Northern Star Resources Ltd (ASX: NST).

Syrah Resources Ltd (ASX: SYR)

The Syrah Resources share price is up 12% to 27.5 cents. This has been driven by news that the graphite miner's Balama operation is almost back up and running after civil unrest. It said: "Over the weekend, Mozambique Government authorities cleared the remaining illegal protestors and restored site access for Balama operations. The Company is mobilising camp support, inspection, and maintenance teams. An update on start of operations at Balama and product shipments will be provided in due course."

Tyro Payments Ltd (ASX: TYR)

The Tyro Payments share price is up 4% to 80.7 cents. Investors have been buying the payments company's shares after it announced that it was withdrawing its takeover proposal for Smartpay Holdings Ltd (ASX: SMP). It said: "Tyro was informed of Smartpay's decision to enter an exclusivity arrangement with another party for a cash offer of NZ$1.20 per share on Friday 2 May. This was prior to conclusion of the agreed due diligence process and receipt of an update to Tyro's cash and scrip synergistic merger proposal."

The post Why 4DMedical, Gold Road, Syrah, and Tyro shares are racing higher today appeared first on The Motley Fool Australia.

That's because it has just confirmed the receipt of a takeover offer from Tyro Payments Ltd (ASX: TYR) and a third party.

Which ASX tech stock?

The stock in question is Smartpay Holdings Ltd (ASX: SMP).

At the time of writing, its shares are up 51% to 80 cents.

Smartpay is Australia and New Zealand's largest independent full-service EFTPOS provider. At the last count, it was servicing over 35,000 merchants with approximately 48,000 secure and feature-rich EFTPOS terminals.

The company highlights that in New Zealand, it is the largest direct connector of EFTPOS terminals to Paymark, the central electronic payment processing platform. Whereas in Australia, it is a payment facilitator providing credit and debit card acquiring through EFTPOS terminals, challenging the traditional payments space.

What happened?

This morning, the ASX tech stock revealed that it has received two separate conditional, non-binding and indicative proposals.

One of the proposals is from Tyro Payments and the other proposal is from an international suitor.

According to the release, the Tyro Payments indicative proposal is to acquire 100% of the issued ordinary shares of Smartpay by way of scheme of arrangement for a price of NZ$1.00 (approximately A$0.90) per share. This comprises a majority of Tyro shares as well as cash consideration.

No terms have been provided for the other indicative proposal, other than that it is also for 100% of the issued ordinary shares of Smartpay.

The release notes that both of the proposals are preliminary only and highly conditional. This includes the satisfactory completion of respective due diligence and execution of definitive transaction documentation.

Due diligence granted

The ASX tech stock advised that its board has decided to allow both Tyro the third party to conduct an initial limited period of commercial due diligence on a non-exclusive basis.

It notes that this will allow it to better assess the relative merits of each proposal and give each party an opportunity to further improve their respective offers based on the information received.

Reciprocal due diligence will be conducted on Tyro Payments given the majority of the proposed consideration is to be satisfied by the issue of new shares.

Though, management warns that the provision of limited due diligence does not guarantee that either of the proposals will result in a binding offer or one that is capable of being recommended by the Smartpay Board.

The Tyro share price is up almost 5% on the news.

The post Guess which ASX tech stock is rocketing 51% after receiving two takeover offers appeared first on The Motley Fool Australia.