Share price of Paytm targeted at Rs.1200? What JPMorgan says
CLSA has increased its target on the share to Rs 1,050 from Rs 850 before. Paytm GMV increase for Q1 was in line; the net take rate gain was surprising.
The number of sound-box machines got to 80 lakh merchants, Paytm said.
Shares of One 97 Communications (Paytm) dropped over 3% in Monday’s trade even as the ew-age firm reported narrowing losses for the June quarter. Brokerage CLSA has increased its share target to Rs 1,050 from Rs 850 earlier.
CLSA said while Paytm’s gross merchandise worth increase for the quarter was in line, the improvement in the net take rate was a shock. It said Paytm’s Ebitda (excluding ESOP) was marginally more increased than its estimate, with in-line earnings but lower processing expenses.
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Citi has raised its target on the stock to Rs 1,200 per stock from Rs 1,160. It said that gains in net income margins more than offset lower lending distribution take-rates & higher fixed costs’ growth.
Goldman Sachs said Paytm is on track to be the most promising Indian internet business beginning FY25. It offered a target of Rs 1,200 on the share.
JPMorgan has proposed a target of Rs 950 on the share. It said that crucial stock drivers from here would be the clearance of regulatory overhangs and FCF & PAT breakeven. “We think Paytm can be the first Indian B2C internet stock to trade on profit rather than revenue multiples,” it stated.
Source – BT
