4 Foreign Brokerages Recommend Purchasing Paytm Stock

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4 Foreign Brokerages Recommend Purchasing Paytm Stock
03 Dec 2022
6 min read

News Synopsis

Leading brokerages like CLSA, BofA, Morgan Stanley, and Goldman Sachs agree that Paytm's core businesses of lending and payments are profitable and should grow over time. According to ICICI Securities, Paytm has recently outperformed forecasts and is still "ahead of the guided timeline to achieve operating profitability"

Paytm's stock recently traded at Rs. 536.95 a share, up 7.16% from the previous close on Friday. The market price as of today is close to the 52-week low set on November 23, 2022, which is Rs 438.35. Rs 1,725 is its 52-week high. The stock has increased 15.42% in one week. It fell by 16.44% in a single month and by 66.46% over the period of a year.

Top analysts recently met with Paytm, the leader in digital payments and financial services in India and the pioneer of QR and mobile payments. Following the company management's impressive presentation, Paytm has gotten high marks from all major brokerages, as seen by its 5% increase in share price on Friday.

Another "BUY" recommendation has been given to the company by equity research company JM Financial Institutional Securities Limited. Paytm now gets a BUY rating from the analyst, with a target price of Rs 600. After the company's analysts met in Mumbai, the upgrade was announced.

Paytm's risk-reward ratio is improving, according to JM Financial, and the management has shared insights into the business model across several segments. The company went on to say that Paytm's payments ecosystem, which is present among merchants and customers, serves as a reliable engine for attracting new customers and keeping existing ones engaged. It also offers numerous chances for revenue generation.

"On our valuation metric of FY30E EBITDA discounted back to FY24E, Paytm is currently trading at 14x EV/ EBITDA which is in line with average valuation of global peers," it continues.

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