Ann: COVID-19 Trading Update 79 - Week Ended 17 September 2021, page-8

Retail and hospitality will be roaring back after lockdown

With Australia’s 2 largest states hurtling towards 70% and 80% vaccination coverage, the end of lockdowns is looming.

And with that, Australians (or at least the vaccinated ones) are forecast to spend big on retail and hospitality.

EGG portfolio manager David Allingham reckons Tyro Payments Ltd (ASX: TYR) is poised to take full advantage.

“This business is, we think, absolutely at the forefront of the reopening trade that we’re going to see coming into Christmas across NSW and Victoria.”

Tyro provides card payment terminals to customer-facing businesses.

“Its 2 key payment verticals, physical, are retail and hospitality. It’s about 80% of its transaction value,” he said.

“This business has clearly been hampered by what has happened with the lockdowns. This is going to have an enormous reopening benefit.”

Tyro shares are up 19.5% for the year, trading at $4.05 on Tuesday afternoon.

“We’re bullish on Tyro. It’s trading at $4 today — we think it can trade comfortably with a $5 handle as we move into next year.”