Paytm was assigned a Buy rating by Nomura on Thursday, as the global brokerage started coverage on the stock with a target price of Rs 2,250, an upside of 31% from current levels. Shares of One 97 Communications, the parent company of Paytm, gained over 3% to Rs 1,766 on the BSE, after the bullish call.
Nomura analysts say Paytm is riding India’s digital payments highway and see robust growth levers in the coming quarters. Nomura expects the company's EBITDA to grow at a CAGR of 96% over FY26-29F. The stock currently trades at around 26x FY29F EV/EBITDA. Key risks to the brokerage's outlook include a deterioration in asset quality in the lending business and intensifying competition.
