Bernstein has maintained its “Outperform” rating on Paytm while raising the target price to ₹1,000 from ₹750, reflecting a 23.1% upside from the current market price of ₹812.00.
The brokerage noted a shift in discussions around Paytm, from survival risks to evaluating bull and bear case scenarios. In a bullish scenario, Bernstein sees significant improvement in payment margins and lending partly supported by Paytm’s balance sheet, with potential for ~100% upside to base case EPS estimates.
However, in a bearish scenario, payment margins could face pressure, and loan disbursal growth may remain subdued, potentially leading to a 40% downside to base case estimates.
Disclaimer: This report is for informational purposes only and should not be considered investment advice. Please consult a financial advisor before making investment decisions.
