JPMorgan sees 60% upside in beaten Paytm shares. Here’s why…

JPMorgan called Paytm a “horizontal fintech leader” in India, having built more sources of monetization in payments, commerce and financial services than any of its competitors. “This gives it the unique ability to drive monetization and profit across multiple segments at a lower customer acquisition cost than its peers.”

He expects Paytm to see strong revenue growth across all of its business segments, driven by device monetization in payments, financial services cross-selling, ticketing recovery and growing monetization. ads. “We are seeing revenue growth of over 40% CAGR in FY22-26 to around Rs 21,750 Crore. We see it retaining the highest revenue and profit levels among its local vertical and global horizontal peers.

Risks JPMorgan sees to its rating and price target

  • Lower than expected growth in monthly transacting users and GMV per MTU.

  • Lower than expected loan growth and undetermined portfolio credit behavior risk.

  • Adverse regulatory risks for payment merchant discount rates and restrictions on digital lending.

However, not all brokerages are as bullish on Paytm as JPMorgan.

Macquarie – the first to give the digital payments platform a bearish rating ahead of its stock market debut – sees “tough times ahead”. The brokerage, which had made the most accurate call on Paytm’s parent company after listing, has a target price of Rs 450 each, with an “underperforming” rating.

Of the nine analysts following the company, four suggest a “buy”, two recommend a “hold” and three a “sell”, according to Bloomberg data. The average of the 12-month consensus price target implies an upside of 37.2%.

Shares of One97 gained as much as 2.2% to Rs 627.95 each in early trading on Tuesday.

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