A first half trading update by Tyro Payments impressed Morgan Stanley, along with a 25% increase in FY23 earnings (EBITDA) guidance. New customers, revenue growth and gross profit exceeded the broker's expectations.

Morgan Stanley raises its target to $1.60 from $1.40 and believes the trading multiples (which exceed most global peers) are justified, based on recent takeover bids. Equal-weight. Industry view: Attractive.

Sector: Software & Services.

Target price is $1.60.Current Price is $1.48. Difference: $0.12 - (brackets indicate current price is over target). If TYR meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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