Paytm Analyst further reduces the Target Price on the Stock

Macquarie Capital Securities (India) Pvt. analyst, who earlier predicted the downfall of the share of Paytm the Indian digital payments startup has further reduced the target price of the share. Paytm's share has slumped 71% since its November market debut on the Indian Stock Exchanges. The target price of the Paytm stock has been reduced to Rs. 450 from Rs. 700 by Macquarie’s Suresh Ganapathy. This further lowered the valuation of Paytm. He didn’t change his earnings or revenue estimates for Paytm, which according to him are underperforming. Paytm Initial Public Offering (IPO) is one of the biggest IPOs in history. However, there have been several challenges for the digital payment platform since then. Recently, the Reserve Bank of India (RBI) restricted Paytm Payments Bank from acquiring new customers and ordered them to conduct an independent IT audit. According to data compiled by Bloomberg, the average 12-month price target among nine analysts covering Paytm is Rs 1,203.  Ahead of the listing of Paytm on the market, many Macquarie analysts including Ganapathy termed the company underperforming and gave a price target of Rs 1,200. However, the IPO was priced at Rs. 2150.