Paytm’s recent developments have led to varied recommendations from brokerages including Jefferies, Bernstein, and UBS.
Jefferies has maintained a hold call on Paytm, with a target price of ₹700, reflecting a 2.3% upside. Jefferies highlighted the company’s EBITDA losses narrowing due to cost reductions and its entry into disbursement-linked lending, which could accelerate breakeven.
Bernstein gave an outperform rating with a target of ₹600, indicating a 12.3% downside. Although Bernstein praised Paytm’s GMV growth, it raised concerns about the decline in personal loan disbursals.
UBS maintained a neutral rating on Paytm with a target price of ₹490, reflecting ongoing challenges. UBS cited the recent approval from NPCI allowing Paytm to add new UPI users as a positive, but also highlighted a decline in monthly transacting users (MTUs) from 100 million in December to 71 million in September 2024.
Given the mixed ratings, Paytm remains a hold or cautious buy depending on the brokerage outlook.
Disclaimer: The information provided is for informational purposes only and should not be construed as investment advice.
