The ASX share choice of Ben Clark from TMS Capital is Tyro Payments. Mr Clark thinks that the business has got a really good long-term structural growth story.
The fundie thinks Tyro is a recovery play because as the economy reopens and relaxation starts to come back in, Tyro could benefit from the amount of hospitality merchants it services and there could be “some pretty strong growth.”
There are four catalysts that TMS Capital sees for the ASX share. First, the fund manager sees the volume of transactions accelerating through the network. Between 1 December and 11 December, Tyro saw 29% growth compared to the prior corresponding period.
Second, Mr Clark thinks the ASX share will gain more of the market share and potentially enter into new verticals.
Third, he’s excited by the launch of TyroConnect. This is the integration hub that Tyro has build around it point of sale (POS) system, which TMS thinks will create more customer loyalty.
The final point was that the lending part of the
business, which froze during the COVID-19 period, will rise again. It could turn into a good profit centre.
TYR Price at posting:
$3.37 Sentiment: Buy Disclosure: Held
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