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Morgan Stanley Turns Bullish on Paytm, Raises Target by 35%
Sentiment: PositiveHigh Priority
What Happened?
Morgan Stanley upgraded Paytm's parent company, One 97 Communications, to Overweight and raised its price target to ₹1,950, citing stronger growth in payments and financial services. This implies a potential upside of 22% from its recent closing price.
Key points
- Morgan Stanley raised Paytm's price target by 35% to ₹1,950.
- The new target suggests a 22% upside from Paytm's closing price of ₹1,601.60.
- Paytm shares gained 46% over the last six months.
- Morgan Stanley expects Paytm's payments business to accelerate in fiscal 2027.
- The brokerage forecasts overall revenue growth at about 30% from FY26 to FY29.
- Proposed changes to the UPI merchant discount rate could create significant revenue opportunities.
Key insights
- Faster growth in UPI transactions could strengthen Paytm's market position.
- Increased profitability may attract more investors to Paytm's stock.
- The potential MDR changes could significantly impact Paytm's revenue structure.
Market Impact
Financial Services
PositiveThe upgrade could lead to increased investor interest and higher stock valuations for Paytm.
Why it matters
This upgrade reflects growing confidence in Paytm's ability to enhance revenue and profitability through its digital payments and financial services.
Tags
Entities
Morgan Stanley· OrganizationPaytm· CompanyOne 97 Communications· CompanyUPI· Technology
Source
Business Standard
