BUSINESS

Paytm To Grow Laon Businesses, Analysts Rate The Stock As Buy

Major brokerage companies have given Paytm favorable ratings in the wake of its recent statement that it would be expanding into higher-priced personal and merchant lending.

Brokerages that have maintained a “buy” recommendation on Paytm shares include Bank of America (BofA), JM Financial Services, Jefferies, Motilal Oswal Financial Services, and Dolat. These brokerages have expressed confidence in the company’s strategic actions.

The brokerage business believes that the high take-rate loan and subscription-based soundbox revenue structural narrative is still valid. In line with BofA’s optimistic forecast is Paytm’s entry into higher-priced personal and merchant loans, specifically aimed at lower-risk and highly credit-worthy clients via partnerships with major banks and NBFCs.

Motilal Oswal recognizes that Paytm’s asset quality indicators are consistent and predicts that the company will expand in the medium run due to an increase in expensive personal and merchant loans.

The brokerage firm thinks that more loan partners will help fuel the business’s continuous expansion.

Despite keeping an “equal-weight” recommendation on Paytm shares, Morgan Stanley is upbeat about the company’s good asset quality and demand for expensive loans.

The brokerage company highlights how Paytm’s new lending agreements have the ability to grow its loan portfolio and offset any income loss resulting from the downturn in the postpaid lending market.

Dolat is nevertheless upbeat about Paytm’s future, highlighting the firm’s dedication to a high-quality portfolio and the ongoing acquisition of new partners. Dolat continues to have a “buy” recommendation on Paytm stock, with a 1,320 target price.

Bernstein maintains its ‘outperform’ rating on Paytm’s shares in response to the company’s management statement about plans to expand its credit distribution business with an emphasis on higher-priced loans.

Bernstein’s optimistic prognosis is in line with Paytm’s focus on satisfying the need for higher-ticket, low-risk personal and merchant loans.

Paytm’s deliberate entry into the higher ticket loan sector demonstrates both its dedication to broadening its product line and its responsiveness to market needs.

Leading brokerages’ favorable ratings for Paytm indicate their trust in the company’s capacity to successfully manage and take advantage of changing financial environments.

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