UBS has maintained a neutral rating on Paytm, setting a target price of ₹490. UBS acknowledged the recent approval from NPCI, allowing Paytm to onboard new UPI users, which is expected to positively impact the company’s growth. The brokerage highlighted that this could help Paytm regain market share in payments GMV.
However, UBS also pointed out a concerning drop in monthly transacting users (MTUs), from 100 million in December 2023 to 71 million in September 2024, due to restrictions on adding new customers. Despite these challenges, the approval from NPCI provides an opportunity for Paytm to rebuild its customer base.
UBS’s neutral stance reflects the mixed signals for Paytm’s growth prospects, balancing positive regulatory developments with operational challenges.
Disclaimer: The information provided is for informational purposes only and should not be construed as investment advice.
