Paytm‘s share price surged up over 7% on Thursday to hit an intraday high of ₹784.
What Happened: Shares of the fintech giant have had a rugged ride at the bourses ever since its listing. However, since the start of the year, Paytm’s share price has started to gain some momentum. The stock has gone up over 45% year to date.
The surge in the stock today comes as global research firm BofA Securities upgraded the stock’s rating to “buy”, raising the price target to ₹855 – an upside of around 17% from the stock’s last closing price of ₹727. The firm said that the company is in a sweet spot with limited competition. It also added that the recent ONDC traction has helped the payments giant.
The firm said that Paytm is well-positioned to dominate the SME merchant landscape. For these reasons, the firm said that it sees the risk-reward ratio in the stock leaning towards the positive.
The fintech company earlier this week disclosed its operational updates for the April and May months. In the period of April-May, the company recorded an average monthly transacting users (MTU) of 9.2 crore, marking a 24% increase from the 7.4 crore MTU reported during the same period last year. Additionally, the payments giant announced that it added 4 lakh new subscribers to its merchant payment soundbox service in May 2023.
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Price Action: Paytm’s share price was up 7.57% to trade at ₹782 in the early hours of trading on Thursday.
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