Paytm‘s share price slumped back into the red on Friday to continue its 3-day losing streak.
What Happened: Analysts at global research firm BofA Securities maintained its “buy” rating for the stock with a price target of ₹1,020 – an over 17% upside from the stock’s last closing price of ₹865.95. The firm said that it expects the fintech giant’s margin improvement to be faster than earlier estimated.
The firm said that the momentum in high-margin lending and soundbox business is expected to remain strong for at least another 3-4 quarters. However, the firm mentioned that a key risk to the business would be an increase in competitive intensity from PhonePe or Reliance‘s Jio Financial Services.
The payments behemoth has had a strong run at the bourses since the start of the year. The Paytm share price has gone up over 60% on a year-to-date basis. Just in the past month, the stock has gone up over 20%.
Price Action: Paytm’s share price was down 1.78% to trade at ₹850.55 as the markets opened on Friday.
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