Paytm‘s share price has been on an impressive bull run since the start of the year and analysts at BofA Securities see the stock going further up.
The Paytm Analyst: The Sachin Salgaonkar-led analyst team at BofA Securities maintained the ‘buy’ rating on the stock with a price target of ₹1,020. The price indicates an over 20% upside from the stock’s current market price of around ₹835.
The Paytm Thesis: The firm noted that Vijay Shekar Sharma buying a 10.3% stake in Paytm from Antfin removes an overhang on the stock from the risk that Antfin in future may look to reduce its stake leading to
The firm added that the reduction of a Chinese entity’s stake in the company would likely have a positive impact on its overall fundamentals. The firm highlighted that in November 2022, the Reserve Bank of India (RBI) rejected Paytm Payments Services Limited’s (PPSL) application to operate as a payment aggregator.
The RBI granted PPSL 120 days to reapply for the license and instructed the company, which is a wholly owned subsidiary of Paytm, not to onboard new online merchants until approval is obtained. This decision was reportedly made to allow PPSL time to comply with foreign direct investment (FDI) guidelines. Now the brokerage firm anticipates that such concerns are unlikely to persist moving forward.
Price Action: Paytm’s share price was down 1.38% to trade at ₹838.95 in early trade on Tuesday.
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