Paytm shares jump 7% as Jefferies, other brokerages raise target prices and earnings estimates after new UPI charges
Paytm shares surged over 7% after brokerages raised target prices following the introduction of MDR on select UPI transactions above Rs 2,000. Jefferies, JM Financial and Emkay Global retained Buy ratings on the stock.
Paytm's shares surged by over 7% on Wednesday following brokerages raising their target prices and earnings estimates amid the introduction of a new Merchant Discount Rate (MDR) on select UPI transactions. The government announced the MDR, which will apply from October 15 onwards, imposing a 0.4% charge on transactions exceeding Rs 2,000, with a maximum fee of Rs 300 for transactions of Rs 75,000 or higher.
Despite this change, Paytm and other companies emphasized that customers will not bear any charges for UPI payments. Both Jefferies and JM Financial raised their target prices for Paytm shares to Rs 2,150 and Rs 2,150, respectively, implying a substantial upside potential.
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