UBS has maintained a “Neutral” rating on Paytm, significantly increasing the target price to ₹1,000 from ₹490, reflecting notable enhancements in the company’s business model. The brokerage anticipates Paytm to achieve adjusted EBITDA break-even by the fourth quarter of FY25, with FY26 revenue aligning with FY24 levels. UBS acknowledges that Paytm has already implemented substantial cost optimizations, and future growth will depend on revenue generation.
In recent developments, Paytm has introduced the ‘UPI LITE Auto Top-up’ feature, enabling seamless, PIN-less transactions under ₹500. This innovation aims to enhance user experience for daily expenses, positioning Paytm competitively in the digital payments landscape. Additionally, the company’s shares have surged by 5%, nearing a 52-week high, following Bernstein’s increased target price to ₹1,000, citing Paytm’s strong positioning in India’s online food delivery and quick commerce segments.
These advancements, coupled with regulatory clarity, have led to a sharp re-rating of Paytm’s stock, improving its market standing. Investors remain optimistic about Paytm’s dominance in digital payments and its trajectory towards profitability.
