There are plenty of opinions out there on different ASX shares. Some stocks are rated as buys by multiple brokers.
If a business is seen as an opportunity by multiple analysts who think there is plenty of upside, then there could be an opportunity there. It is possible that all of those analysts are wrong at the same time though. So, keep that in mind.
As the name may suggest, Tyro is a payments business. Its payment terminals are being used by many thousands of businesses around the country such as cafes.
The Tyro Payments share price has fallen by almost 60% over the past six months, with a 46% drop since the start of the year.
This business is rated as a buy by four brokers, including Ord Minnett and Morgans.
Brokers noted that margins and costs were worse than expected. However, despite the disappointment, brokers are expecting growth from the business.
Tyro is expected to show that transaction volume growth will help the ASX share’s margins.
Management pointed out that the second half is seeing strong momentum. January transaction value was up 35% to $2.7 billion and the February transaction value (to 18 February) was up 50% to $1.8 billion. E-commerce transactions soared 836% to $36.5 million. The payments business gross profit jumped 24% to $11.1 million.
The Ord Minnett price target is $3 on Tyro and the Morgans share price target is $2.68.
Pinnacle Investment Management Group Ltd (ASX: PNI)
Pinnacle is an ASX share where it invests in investment managers to give them the optimal environment to deliver strong investment returns.
The company takes care of a number of things including distribution and client services, compliance, finance legal, technology, seed funds under management (FUM) and working capital, fund administration and so on. It means the fund managers can just focus on generating the best returns.
It’s invested in a number of fund managers including Hyperion, Plato, Solaris, Antipodes, Firetrail, Spheria, Metrics, Coolabah and Five V.
Pinnacle is rated as a buy by at least four brokers, including Ord Minnett with a price target of $15. Whilst the Pinnacle share price has fallen by 37% since the start of the year, the broker likes the growth potential of the business. It’s possible the business could make another acquisition – it’s looking for opportunities.
The HY22 result showed that the ASX share’s aggregate affiliate funds under management (FUM) was $93.6 billion at 31 December 2021, which was up 33% year on year. The net profit after tax (NPAT) rose 32% to $30.3 million.
Pinnacle says that it has an excellent platform in place to continue to prosper, driven by growth within existing affiliates, incubating new affiliates and strategies, domestically and offshore.
Ord Minnett thinks the Pinnacle share price is valued at 23x FY22’s estimated earnings.
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