Recent weeks have been confusing for investors of financial and technology ASX shares.
As COVID-19 Omicron put a spanner in our plans to reach post-pandemic life, the S&P/ASX 200 Financials (ASX: XFJ) has dropped 2.8% and the S&P/ASX All Technology Index (ASX: XTX) has calamitously plunged more than 14% since mid-November.
But no 2 businesses are the same, so such sector-wide declines can sometimes mean individual ASX shares might be selling at a bargain.
“Many good companies are oversold,” said market commentator Peter Switzer on his Switzer TV Investing show.
The Switzer team recently analysed broker predictions for various ASX fintech shares.
This allowed them to pick out 2 ASX shares in the payment tech area that professional investors think have massive upside potential:
‘Good things come to those who wait’
Tyro Payments Ltd (ASX: TYR) shareholders have torn their hair out seeing the stock plunge 37% since the start of November.
The fintech shares fell 15% in one day at one stage.
They would feel like 2022 is starting the same way as 2021, when they had to watch the company scramble to service customers with “bricked” payment terminals.
But Switzer’s research showed analysts are confident that Tyro can turn it around from here.
On average, the brokers saw a remarkable 63% upside in the stock price. Morgan Stanley was the most confident, betting that Tyro shares would soar 86%.
Tyro shares fell another 1.53% on Tuesday to close at $2.58.
“Sometime this year these stocks will benefit from a rotation back into the tech and payment sector,” said Switzer.
“But you’ll have to have patience… Good things come to those who wait.”
Fighting Irish
Similarly, EML Payments Ltd (ASX: EML) shares have had a shocking 12 months but analysts firmly back a 2022 revival.
The EML stock price has lost more than 43% since last May.
The company had been fighting regulatory issues in Ireland, which seems to have stabilised now.
Brokers on average are seeing a 29.1% upside to the EML share price.
UBS is the most bullish, salivating at a 41% price target for the payments technology provider.
Thematically both EML and Tyro could benefit from continued post-pandemic economic revival.
The post 2 ASX fintech shares that could rocket this year appeared first on The Motley Fool Australia.
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More reading
- Why is EML payments (ASX:EML) share price having a rollercoaster start to the year?
- Here’s why the EML (ASX:EML) share price could be a big opportunity
- Why is the Tyro (ASX:TYR) share price tumbling today?
- 2021 was a year to forget for the EML (ASX:EML) share price. Here’s why
- 2 ASX growth shares rated as buys in January 2022
Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended EML Payments and Tyro Payments. The Motley Fool Australia owns and has recommended EML Payments. The Motley Fool Australia has recommended Tyro Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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