Shares of Paytm’s parent company, One97 Communications, are on a consistent upward trend. On Friday, the stock surged by around 7%, reaching an intraday high of ₹897.90.
This marks the fifth day in a row that Paytm’s shares have gained value, rising by 19% over this period.
A global brokerage firm, Bernstein, has shown confidence in the stock, recommending a “buy” rating and improving its outlook for Paytm.
Bernstein Sets a Higher Target for Paytm
Bernstein has raised its target price for Paytm shares to ₹1,000, an 18% increase from its earlier target of ₹750. The firm has also maintained its “outperform” rating for the stock.
The brokerage is optimistic about Paytm’s potential to grow its lending business and enhance its payment margins.
These improvements could potentially double the company’s estimated earnings per share (EPS).
Bernstein also pointed out several growth drivers, including regulatory changes, the company’s debt strategy, and better payment margins, which could strengthen Paytm’s profitability.
Paytm’s Performance in 2024 and IPO History
On November 22, Paytm’s stock climbed 6.2% to ₹897.90, continuing its rally for the fifth straight day.
The stock has gained over 41% so far in 2024, despite a decline of more than 7% last year. November has been particularly strong, with the stock increasing by over 16%.
Paytm had a highly anticipated IPO in 2021, launching at ₹2,150 per share. However, the stock has since fallen by nearly 60%.
Despite this, the recent gains and positive outlook from analysts like Bernstein indicate a potential turnaround for the company.
