Paytm share price: Morgan Stanley, BofA, Citi give 'buy' tag after 60% rally in YTD
₹438.35 per share on NSE on 24th November 2022. After that, Paytm shares have bounced back strongly and surged around ₹860 apiece levels, rising almost 100 per cent in the last seven months.
In YTD time, Paytm shares have delivered more than 60 per cent return as the fintech stock has risen from near ₹530 to ₹860 apiece levels in 2023. This has attracted attention of leading brokerages like Morgan Stanley, Bank of America (BofA) and Citi.
These brokerages have given positive review to Paytm shares dedicating 'stock to buy' tag to the stock. In fact Citi has raised Paytm share price target to ₹1160 per share in long term.
On Paytm share price outlook, Citi report says, "We continue to like Paytm’s strength as a payments-led, fintech platform, its leadership in product development and recent execution track record (devices, lending distribution, UPI Lite, etc.)," adding, "Overall, we estimate 8% QoQ improvement in contribution profits (excluding UPI incentives from 4Q) to ₹11.9bn (c52% of revenues). On Adj EBITDA/EBIT margins, we expect 2%/-5% resp (flattish QoQ excluding UPI incentives) - expect more modest gains this Q, driven by seasonally higher marketing spends (IPL) and employee costs (wage hikes in 1Q)." Last month, BofA raised Paytm target price again to ₹1020, citing that company’s growth with Sound box and lending remains strong for next 2-3 years with limited competitive risks.
Additionally, global brokerage firm Morgan Stanley retained its 'equal-weight' rating with a note that GMV growth accelerated and MTU growth remained broadly steady in June 2023. On suggestion to fresh investors in regard to Paytm shares after 60 per cent rally in YTD, Citi report recommended buying the stock seeing more upside potential
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