Jefferies has upgraded Paytm (One 97 Communications Ltd) to a Buy rating and raised the target price to ₹1,250 per share, implying an upside of nearly 19% from the current market price of ₹1,053.10.
The upgrade follows a better-than-expected Q1FY26 performance, with EBITDA surpassing estimates. Jefferies attributed the beat to lower direct lending group (DLG) costs and improved operating leverage, which supported profitability.
Looking ahead, Jefferies expects continued profit growth driven by a combination of revenue upside and further gains from operating leverage. It also noted that Paytm’s current valuation stands at a discount compared to peers like PB Fintech, offering scope for compounding returns over time.
Disclaimer: The brokerage views expressed above are those of Jefferies. This article does not constitute investment advice. Readers are advised to consult their financial advisor before making any investment decisions.
