Top brokerage companies increase Paytm’s price target by 119%, will make profit on buying shares

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Noida / New Delhi : India’s leading digital and mobile payment system Paytm has received positive comments from global brokerage analysts. He has received this comment after the fintech company achieved an operating profit of Rs 31 crore with Ebitda before the scheduled date of September 2023 from Employee Stock Ownership Plan (ESOP) cost. Following this, global brokerage firms such as Goldman Sachs, Bank of America, CLSA and Citi have raised their price targets on Paytm by up to 119 per cent. Along with this, Citi, CLSA and Goldman Sachs have recommended buy on the stock ahead of Q3 FY23 earnings, while Bank of America (BofA) has maintained its neutral rating.

expected to maintain profit

Global brokerage firm Goldman Sachs said that the current share price of Paytm maintains its attractiveness in India’s largest fintech platform. Analysts at the firm also said they expect profitability to sustain in March 2023 with continued strong traction in disbursements, growth in operations and Unified Payments Interface (UPI) reimbursements. At the same time, another brokerage firm CLSA said that Paytm has delivered higher, as the company’s revenue was largely in line and Paytm is expected to continue to post positive earnings before interest, tax, depreciation and amortization (EBITDA). Chances are.

Paytm got strength from ESOP

Paytm’s strong performance was highlighted by global brokerage firm Citi, which said Paytm delivered ESOPs before adjusted amortization in three quarters on inline revenue, driven by lower net payout margin and sharply lower advertising and promotion . It added that Paytm continues to leverage its payments platform to continue loan disbursements important for further growth.

Growth potential without risk

Most analysts also said that one important part is that Paytm’s future growth may not impact its balance sheet. Bank and US analysts said they see strong room for Paytm to grow without any balance sheet risk. He added that the loan business provides the fintech firm with an upward trajectory, giving Paytm room to expand, subject to performance.

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