Tag: macquarie

After releasing several bearish reports on Paytm, global brokerage firm Macquarie has given a double upgrade to the stock and raised its target price by 80% to Rs 800. Macquarie has upgraded Paytm to 'outperform' from 'underperform'.Due to a sustained reduction in losses, the once bearish analysts say they have seen a “very visible change in the approach of management to deliver profit” by the firm, owing to its recently reported core Ebitda profitability. "Our view at Rs 2,150 is different from our view when the stock is priced around ~Rs 600. Since our last target price cut, Paytm has positively surprised on the distribution of financial services revenue by a wide margin and has also managed to control overall expenses and charges," Macquarie analysts Suresh Ganapathy and Param Subramanian said. Read more

Shares of One97 Communications, the parent company of digital payments major Paytm, hit a new low of Rs 1,153, down 6 percent on the BSE in Monday’s intra-day trade after global brokerage Macquarie maintained its ‘underperform’ rating on the stock and reduced its target price (TP) to Rs 900. It also suggested that the company’s future earnings growth may be worse than it had earlier forecast. The target suggests a 58 percent downside over the issue price of Rs 2,150. From prevailing levels, the target suggests 26 percent downside potential. Shares of Paytm have had an abysmal journey on Dalal Street so far since listing in November last year. The brokerage firm has also cut its earnings projections for Paytm. “We are roughly cutting revenue estimates for FY21-26E on an average by 10% every year due to lower distribution and commerce/cloud revenues offset partially by higher payment revenues,” Macquarie said. Read more