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Mumbai: India’s digital payments giant Paytm has received a bullish rating following a disappointing listing from a leading broker and bearish thoughts since then.
Morgan Stanley has started coverage on the digital payments startup with an overweight rating and a price target of Rs 1,875, which means up 43% from Tuesday’s close. After the stock fell to a record low earlier this week, it sees attractive exposure to reward, and the firm is valued at $17 billion.
Analysts, including Sumeet Kariwala, wrote in a note on Tuesday, Paytm’s “financial services should improve rapidly” as the company continues to break even at operating profit levels in FY2025.
US Bank’s outlook is in contrast to its peers such as Macquarie Group Ltd and Goldman Sachs, which have underperformed and neutral ratings respectively on the stock. Among the brokers based in India, Dolat Capital Markets Pvt. Bought Paytm earlier this month and set a price target of Rs 2,500. Morgan Stanley and Goldman were both among the bankers to the issue of the stock.
Paytm’s parent company One97 Communications Ltd raised $2.5 billion in its IPO, but a 27% drop in early November 18 made it one of the worst opening performances by a major technology firm since the dot-com bubble era Gave. 1990s. The stock is now down almost 39% from its issue price of Rs 2,150.
Disclosure, Paytm founder Vijay Shekhar Sharma is one of ThePrint’s eminent founder-investors. Please click here For details on investors.
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