DJ Tyro May Have to Discount Fees to Rebuild Trust After Outages -- Market Talk
0055 GMT - Tyro Payments is downgraded to underperform from neutral by Macquarie, which worries about revenue risks and a potential class action related to outages by the firm's payment terminals. The investment bank lowers its merchant growth and total transaction volume expectations following the outages, and says Tyro has sustained significant reputational damage because of the time it took to resolve the issue. Macquarie thinks Tyro might have to discount merchant fees and terminal rental fees in order to rebuild trust. It also says a mooted class action could be material and cuts target price 27% to A$2.55. Shares are down 7.6% at A$2.68. ([email protected]; @StuartLCondie)
TYR Price at posting:
$2.69 Sentiment: Hold Disclosure: Held
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