Paytm shares have bounced back strongly from their life-time low of Rs 438.35 per share on NSE
Paytm Share Price: Paytm shares have bounced back strongly from their life-time low of Rs 438.35 per share on NSE on 24th November 2022 and surged around Rs 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 Rs 530 to Rs 860 apiece levels in 2023.
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Leading brokerages like Morgan Stanley, Bank of America (BofA) and Citi have given positive reviews to Paytm shares dedicating the ‘stock to buy’ tag to the stock. In fact, Citi has raised Paytm’s share price target to Rs 1160 per share in the 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 per cent QoQ improvement in contribution profits (excluding UPI incentives from 4Q) to Rs 11.9bn (c52 per cent of revenues). On Adj EBITDA/EBIT margins, we expect 2 per cent/-5 per cent 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).”
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Last month, BofA raised Paytm target price again to Rs 1020, citing that company’s growth with Sound box and lending remains strong for next 2-3 years with limited competitive risks.
In other news, Paytm has resumed offering cashbacks. This time, money is being offered to merchants instead of consumers, as reported by The Economic Times (ET).
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In the upcoming months, Paytm wants to onboard as many merchants as it can, giving them access to credit that they can both use and extend. The selling point was the competitive pricing of payment terminals and transaction fees, with cashback as the cherry on top, people aware of the matter said.
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