Shares of Paytm’s parent company, One97 Communications, are showing a steady increase. On Friday, the stock rose by about 7%, reaching an intraday high of ₹897.90.
This is the fifth consecutive day of gains for Paytm’s shares, which have risen by 19% over the past five days. A global brokerage firm, Bernstein, has been optimistic about the stock, recommending a “buy” and boosting its outlook.
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Bernstein’s Target Price for Paytm
Bernstein has raised its target price for Paytm shares to ₹1,000, up 18% from its previous target of ₹750. The brokerage firm has maintained its “outperform” rating for the stock.
Bernstein believes Paytm can expand its lending operations and improve payment margins, which could help double its earnings per share (EPS) estimate.
The firm has identified several growth factors that could drive Paytm’s profitability, such as changes in regulations, the company’s debt strategy, and better payment margins.
Paytm Stock Performance in 2024
On November 22, Paytm’s stock rose by 6.2% to ₹897.90, continuing its rally for the fifth day in a row. The stock has gained over 19% during these sessions.
Despite a decline of over 7% last year, Paytm’s stock has surged more than 41% so far in 2024.
November has been a strong month for the stock, climbing over 16%. Paytm’s IPO, launched in 2021 at ₹2,150 per share, has since dropped by about 60%.
Target Price Raised by Bernstein
Bernstein has raised its target price for Paytm’s stock to ₹1,000, an 18% increase from its previous target of ₹750. The brokerage firm has maintained its ‘outperform’ rating on the stock.
Bernstein believes that Paytm’s expansion in lending operations and improved payment margins could lead to a significant increase in earnings per share (EPS).
The firm also highlighted several factors, such as regulatory changes and the company’s debt strategy, that could boost Paytm’s profitability.
Recent Performance and Future Outlook
On November 22, Paytm’s stock rose by 6.2%, continuing its rally to the fifth consecutive session. Despite a decline of over 7% last year, the stock has gained more than 41% so far in 2024.
November has been a particularly strong month for Paytm, with the stock climbing over 16% so far.
The company, which had a highly publicized IPO in 2021, initially launched at a price band of ₹2150, but its stock has since fallen by nearly 60%.