Shares of PB Fintech could remain under selling pressure on Wednesday after international brokerage Bernstein slashed its target price by 53% to Rs 1,085 from Rs 2,310. The stock opened 1% lower on the BSE. Bernstein's new target price implies no upside from current market levels, while retaining its Outperform rating on the stock.
The brokerage said lower general insurance take-rates may not be sufficient to cover current costs. It also expects the POSP business to scale down as the model becomes unviable. Bernstein cut its FY30 net income estimate to Rs 2,000 crore from Rs 3,200 crore, while reducing its FY28 EPS estimate to Rs 24.44 from Rs 35.49. Its forecasts assume that the proposed commission caps are not rolled back.
