Paytm shares, owned by One97 Communications, surged by 3.30% on September 24, 2024, reaching an intraday high of ₹673.05 per share. This rise was driven by domestic brokerage Emkay upgrading its rating for the stock from ‘Reduce’ to ‘Add’ and significantly raising its target price from ₹375 to ₹750 per share, doubling its previous estimate.
Emkay analysts cited easing regulatory conditions, particularly with the National Payment Corporation of India (NPCI) and Reserve Bank of India (RBI), which could enable Paytm to onboard new users and merchants, aiding business growth. The analysts also pointed to the company’s cost optimisation strategies, which are expected to accelerate its path to profitability.
“We upgrade Paytm to ‘Add’ and revise our target price to ₹750 per share, based on our discount cash flow model,” Emkay noted in their report.
By 12:15 PM, Paytm shares were trading 3.48% higher at ₹674.20 on the NSE, reflecting the positive market response to Emkay’s outlook.
