Bernstein predicts Paytm shares to rally by 23%, cites ‘several near-term catalysts’

Global brokerage firm Bernstein has assigned a target price of Rs 1,100 to Paytm, signalling a significant 23.4% upside potential for the stock from its Wednesday closing price. The firm maintained an “Outperform” rating on Paytm, citing several key catalysts expected to drive the stock higher in the near term.

In its analysis, Bernstein projects that Paytm’s earnings per share (EPS) growth will follow a non-linear trajectory, supported by current revenue lines growing at a compound annual growth rate (CAGR) of around 20%, while indirect expenses are expected to grow at a more modest CAGR of 10%.