Tyro Payments (ASX:TYR) shares soared as much as 32% on September 8, after the company turned down an unsolicited takeover bid.
Sydney-headquartered Tyro Payments provides an array of financial solutions to merchants, including payments processing, loans, and banking services.
Tyro shares closed the previous day at just under $AU0.99. They opened today’s session at $AU1.25 and quickly soared to $AU1.30, marking a 32% rise. However, TYR stock is still sharply below its 52-week high of $AU4.39.
Tyro rejects buyout offer of $AU1.27 per share as undervalued
A group of investors led by Potentia Capital Management approached Tyro with a takeover offer. The group, which also includes HarbourVest Partners Construction, Building Unions Superannuation Fund, and MLC Investments, offered to buy Tyro for $AU1.27 a share.
After reviewing the offer and the conditions attached to it, Tyro’s board decided against it, believing it undervalued the company.
Is Tyro stock a good investment?
Tyro shares have declined about 70% since the beginning of 2022. However, analysts believe the stock remains a good investment. According to TipRanks’ analyst rating consensus, TYR stock is a Moderate Buy based on four Buys, three Holds, and one Sell. The average Tyro Payments stock price target of $AU1.37 implies over 8.5% upside potential.
Tyro stock is getting favourable mentions on financial blogs. TipRanks data shows that financial blogger opinions are 82% Bullish on TYR, compared to a sector average of 68%.
Final thoughts
In rejecting the takeover bid, Tyro’s board explained that the company are well placed without it. Tyro is continuing to increase its market share and the company is well-funded to pursue its growth plans.
