Paytm shares: Investors sentiment seems to have soared sky-high, as the shares of the once-troubled fintech firm is once again making headlines. But this time, only for good reasons. On Thursday, Paytm shares surged by nearly 3 per cent.
Paytm Share Price: The shares of the fintech company once again rallied as investor sentiment soared following UBS's price target upgrade
Paytm shares: Investors sentiment seems to have soared sky-high, as the shares of the once-troubled fintech firm is once again making headlines. But this time, only for good reasons. On Thursday, Paytm shares surged by nearly 3 per cent.
The surge came after global brokerage firm UBS raised its target price for Paytm from Rs 490 to Rs 1,000 apiece. The global brokerage also maintained a 'neutral' stance on the stock and pointed out that much of the improvements have already been priced in.
It also added that Paytm's next growth phase must come from revenue, as the benefits of cost optimisation have largely been achieved.
At 02:35 pm, the shares of Paytm's parent company One97 Communications were trading at Rs 939 price level, up by 2.18 per cent on the National Stock Exchange.
Paytm’s stock has soared by more than 180 per cent from its all-time low earlier this year, which came after the RBI's directive to shut down its banking segment, PPBL (Paytm Payments Bank Ltd). The stock initially tumbled over 50 per cent in the following two weeks and has since gradually recovered.
What's even more worth noting is that UBS isn’t the only global brokerage with a positive outlook on Paytm. Last week. Bernstein also reaffirmed its ‘Outperform’ rating on the stock, highlighting the company’s strong growth potential. The brokerage company also pointed out Paytm’s ability to capitalise on emerging fintech trends, forecasting strong earnings growth. This even pushed the stock up by over 5 per cent on the bourses.
A major moment for the stock was the company achieving profitability in the latest quarter. Paytm reported a Rs 930 crore profit in the July-September quarter.
On year-to-date basis, the shares of the fintech company have delivered robust returns of more than 40 per cent on the National Stock Exchange.