India: Shares of Paytm can Go up to Rs 900 this Foreign Brokerage House has Reduced the Target Price

Foreign brokerage house Macquarie has reduced the stock price of Paytm shares. Macquarie has reduced the target price of Paytm shares to Rs 900. Earlier, Macquarie had given a target price of Rs 1200 for Paytm shares. Paytm’s parent company is One97 Communications. Brokerage House says that the possibilities of expanding the distribution business for merchant loans are very limited. This has been said in a report by Economic Times.

The new target price is 58% below the issue price of the IPO
Shares of Paytm (One97 Communications) are currently trading at a level of Rs 1169.20, down more than 5 percent on the Bombay Stock Exchange. The new target price (Rs 900) given by Macquarie for Paytm stock is 58 per cent below its issue price of Rs 2,150. At the same time, the new target price is more than 20 percent below the current stock price.

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Brokerage house reduced the revenue growth rate estimate of Paytm
Foreign brokerage house Macquarie has also slashed Paytm’s revenue growth rate forecast for the financial year 2021-26 from 26 per cent to 23 per cent. Also, lower revenue and higher employees, software-cloud expenses have also pushed the company’s per share loss estimate up by 16-27%.

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Macquarie said Paytm‘s payments business still accounts for 70 per cent of the overall gross revenue. In such a situation, any regulation related to capping charges can have a direct impact on its revenue. The brokerage house has said that Paytm’s entry into insurance was recently rejected by IRDAI. Moreover, the resignation of senior executives has also been seen as a risk. Paytm’s shares have fallen more than 40 per cent since November 18.

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India: Shares of Paytm can Go up to Rs 900 this Foreign Brokerage House has Reduced the Target Price - /10

Summary

Foreign brokerage house Macquarie has reduced the stock price of Paytm shares. Macquarie has reduced the target price of Paytm shares to Rs 900.

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