Paytm Shares Volatile After Q1: Here's What Global Analysts Want You To Do

Paytm‘s share price bounced back in early trade on Tuesday after closing 5% lower on Monday.

What Happened: Shares of the payments giant have been volatile since the company posted its earnings for the quarter ended June. The company reported a decrease in its consolidated net loss to ₹357 crore in Q1 2024, compared to ₹644 crore in the same period last year. However, on a quarter-over-quarter basis, the losses widened from ₹168 crore reported for the March quarter.

Analyst Reactions: Most brokerages remained bullish on the stock. Goldman Sachs maintained its “buy” call on the stock raising the price target to ₹1,200 from ₹1,150. The broekrage in its note said that the company was the fastest growing company within its India Internet coverage adding that Paytm is firmly on track to also be the most profitable internet company in its coverage.

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JP Morgan also maintained its “overweight” rating for the stock with a price target of ₹950. The firm said that the internet company’s Q1 numbers were a surprise on both the revenue and profit fronts.

CLSA maintained its “buy” rating for the stock with a raised target price of ₹1,050. The global brokerage firm said that Paytm’s EBITDA for the quarter ex-ESOP was marginally higher than estimates and revenue was in line. The firm added that it expects the fintech giant to generate free cash flow over the next few quarters.

Bofa Securities also reiterated its “buy” call on the stock with a price target of ₹1,020. The firm said that the company’s revenue and earnings per share were in line, but EBITDA missed its estimates. The firm noted that Paytm’s business model continues to show good traction and cross-selling helps its profitability.

Morgan Stanley, on the other hand, maintained its “equalweight” rating for the stock but raised the price target to ₹830 from ₹750. The firm in its note said that Paytm’s Q1 numbers were good overall. The analyst firm said that its cautious rating was based on the regulatory uncertainty around digital payment charges.

Price Action: Paytm’s share price was up 0.55% to trade at ₹806.40 shortly after the markets opened on Tuesday.

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