Citi has recommended a “Buy” rating for Paytm, stating that the company is on track to achieve adjusted EBITDA break-even by March
Citi has issued a “Buy” rating on Paytm, with a target price of Rs 900 per share, following strong results for the December quarter that surpassed expectations, largely due to reduced corporate overheads. Despite a drop of over 5% in Paytm’s stock on January 21, Citi noted that the company’s merchant business, including devices and the Default Loss Guarantee (DLG) in Digital Lending, continues to show strong growth and customer loyalty.
Paytm reported a narrowed net loss of Rs 208 crore for the December quarter, compared to Rs 220 crore in the same period last year.
In contrast, Macquarie has given Paytm an “Underperform” rating, with a target price of Rs 730 per share. However, JM Financial has reinitiated coverage with a “Buy” rating and a target of Rs 1250 per share.
Additionally, Paytm, through its subsidiary Paytm Cloud Tech, announced plans to expand into the UAE, Saudi Arabia, and Singapore, aiming to offer its tech-enabled merchant payments and financial services in these markets, exploring local licenses, partnerships, and potential strategic investments.
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