Insights

2 ASX shares that may be worth looking at this weekend

Tyro and TechnologyOne are two ASX shares that could be may be worth looking at this weekend.
The post 2 ASX shares that may be worth looking at this weekend appeared first on The Motley Fool Australia. –

There are some potential ASX share investments that may be worth considering for their long-term growth potential.

Businesses that are growing their customer base, volume or revenue strongly may be good candidates to consider if they can turn that growth into profit growth over the long-term.

Here are two to consider:

TechnologyOne Ltd (ASX: TNE)

TechnologyOne, a tech company making software for large businesses and organisations, announced an acquisition this week. It’s called Scientia Resource Management, a UK company servicing the higher education sector.

The deal is expected to cost £12 million, including an initial payment of £6 million upfront.

Scientia provides mission critical software for over 150 leading universities across the UK and Australia.

The TechnologyOne CEO Edward Chung said:

The acquisition forms part of our strategic focus to deliver the deepest functionality for higher education and it will accelerate our growth and competitive position in the UK as well as have significant benefits in the Australian higher education market.

Prior to this acquisition, TechnologyOne said that over the long-term it sees continuing strong growth driven by its global software as a service (SaaS) enterprise resource planning (ERP) solution as it grows its penetration with existing customers, adds new customers and expands globally.

Over the next few years, the ASX share’s SaaS and continuing business is expected to grow by approximately 15% (or more) per annum. It also sees its total annual recurring revenue (ARR) increasing to $500 million or more by FY26, from the base (at the time) of $233 million.

Morgans currently rates TechnologyOne as a buy.

Tyro Payments Ltd (ASX: TYR)

Tyro is a business that provides payment solutions and banking products for merchants/businesses like cafes and many other places you’d need a payment terminal.

The ASX share is the fifth largest merchant acquiring bank in Australia by the number of terminals in the market, behind the four major banks including Commonwealth Bank of Australia (ASX: CBA). Tyro has also recently expanded into e-commerce.

Despite all of the impacts of COVID-19, Tyro continues to report transaction value growth. In FY21, transaction value increased by 26% to $25.45 billion. In the latest weekly update for the 2022 financial year to date, it has seen transaction value growth of 24%.

FY21 also saw the business swing to a positive result in earnings before interest, tax, depreciation and amortisation (EBITDA) terms to $14.2 million. The net loss after tax also improved by 21.6% to $29.8 million. The normalised net loss before tax surged 57.9% to a loss $10.9 million, an improvement from the loss of $25.9 million last year.

It is exploring multiple growth avenues to offer more to existing merchants and win new merchants. Tyro can also be a continuing beneficiary from the shift from cash payments to digital payments. Management are also on the lookout for bolt-on acquisitions.

It’s currently rated as a buy by the broker Morgan Stanley with a price target of $4.60.

The post 2 ASX shares that may be worth looking at this weekend appeared first on The Motley Fool Australia.

Should you invest $1,000 in Tyro right now?

Before you consider Tyro, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Tyro wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

ASX 200 rises, TechnologyOne climbs, Milton up

Why Metalstech, Mineral Resources, TechnologyOne, & Webjet are storming higher

ASX 200 midday update: TechnologyOne hits record high, lithium miners rise

TechnologyOne (ASX:TNE) share price hits record high on UK acquisition news
Tyro (ASX:TYR) share price edges higher as CEO calls for open borders

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Tyro Payments. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!