Citi has reiterated its ‘Buy’ rating on Paytm, increasing the target price to ₹1,000 from ₹900. This implies a potential upside of approximately 18% from the current market price of ₹848.55.
The brokerage highlights that Paytm has fully transitioned to a “growth” focus, with an improved cost structure enabling greater flexibility. Growth momentum remains robust, particularly in merchant-side operations, supported by device adoption and loan distribution.
Citi expects consumer payments to see a steady rise in monetization over the medium term and has revised its payment GMV estimates upwards by 2-3% for FY25/FY26. Additionally, the number of monthly transacting users (MTUs) has shown recovery, with a positive month-on-month trend observed in December 2024.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.