Fintech company Paytm has once again caught the attention of investors. Today, Paytm shares are witnessing a sharp rise in the stock market. This surge follows an update from the global brokerage firm Bernstein, which has raised the target price for Paytm shares.
After Bernstein’s update, investors showed increased interest in buying Paytm shares. As of 10:30 AM today, Paytm shares were trading at ₹878.00 on the Bombay Stock Exchange (BSE), up by 3.86% or ₹32.60.
Paytm Share Target Price Raised to ₹1,000 by Bernstein
Global brokerage firm Bernstein has raised its target price for Paytm shares from ₹750 to ₹1,000. In addition, the firm has given Paytm an ‘Outperform’ rating. Bernstein expects a significant increase in the fintech company’s income. Despite market fluctuations, Bernstein believes Paytm is a long-term stock that has the potential to grow rapidly over time. The growth is expected to be driven by higher payment processing margins, regulatory changes, and the expansion of loan offerings.
Key Reasons Behind Paytm’s Growth
Bernstein highlights multiple factors contributing to Paytm’s projected income growth, including:
Payment Processing Margins: The brokerage noted that Paytm’s payment margin is stable. Despite regulatory actions reducing margins to 10 basis points (bps), the company is expected to recover to 15 bps soon.
Expansion in Lending Services: Paytm’s income could benefit from loan growth, payment processing margins, and regulatory improvements.
Support from Wallet and Credit-Linked UPI: These segments are likely to drive higher margins and sustained profitability.
Paytm Q2 Results
Paytm recently announced its Q2 results for the July to September quarter. The company reported a profit of ₹928.3 crore, a significant increase from ₹290.5 crore in the same quarter last year. However, revenue for the quarter dropped by 34% year-on-year. The sale of its ticketing business to Zomato contributed significantly to the profit boost.
Paytm Share Performance: Recent Trends
According to BSE Analytics, Paytm shares have fallen by 2.26% in the past two weeks. However, over the past year, the stock has risen by 17.67%. In the last six months, the shares have increased by 4.68%. Paytm’s stock performance remains positive despite some challenges. With Bernstein’s revised target price and the company’s strong long-term prospects, investors are keeping a close eye on the fintech company’s progress.