Paytm shares jump 5% after Bernstein assigns target price above IPO price for first time
Paytm shares rallied after Bernstein raised its target price to Rs 2,200, implying 52% upside, while retaining an Outperform rating. The target is the highest on the Street and the first above Paytm’s Rs 2,150 IPO price, with Bernstein factoring in UPI MDR from FY28.
Paytm's shares surged 4.5% to hit a high of Rs 1,506 on the BSE after Bernstein upgraded its target price to Rs 2,200, marking the first time a target price above the IPO price has been assigned to the company. Bernstein raised its target price from Rs 1,500, citing the introduction of the merchant discount rate (MDR) on UPI transactions from FY28E onwards.
The brokerage expects MDR to boost Paytm's net payments margin by 3-4 basis points, leading to a projected 30% increase in FY30E EPS compared to prior forecasts. Bernstein assumes a headline MDR of around 35 basis points, applicable to a subset of UPI P2M transactions, estimating it could generate around Rs 22 billion in additional EBITDA by FY30E.
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Also reported by 1 other outlet
- Paytm shares jump 9% to 52-week high as Bernstein raises target to ₹2,200 thehindubusinessline.com
