Tyro Payments shares plummeted 14.70% to A$0.772. This dramatic decline came on the heels of a government announcement that it is considering a crackdown on card surcharges, a move that could significantly impact the company's revenue streams.
According to the ABC, the Federal Government is gearing up to prohibit debit card surcharges starting from January 2026, with the final decision hinging on a review currently being conducted by the Reserve Bank. This regulatory shift is part of a broader effort to protect consumers from unfair fees and to promote a more transparent financial ecosystem. However, the potential ban on surcharges is expected to put considerable pressure on Tyro's financial performance, especially considering that the company had recently reported improved margins that surpassed market expectations in the fiscal year of 2024.
Also, on Monday, Canaccord Genuity issue a Buy rating with a price target set at A$1.65. The firm noted Tyro as Australia's fifth-largest merchant acquirer, serving over 71,000 merchants. Despite a significant revenue increase, Tyro's current EV/revenue multiple is 0.7 times.
Source: Investing, The Motley Fool
