Paytm: Why Bernstein sees 36% upside on potential return of UPI MDR fees

Bernstein has raised its target price on One97 Communications, the parent of Paytm, as the potential introduction of a merchant discount rate (MDR) on Unified Payments Interface (UPI) transactions could open a new monetisation opportunity for the company. The brokerage has incorporated the potential change into its base case from FY28E and expects it to strengthen Paytm’s longer-term earnings profile.

Bernstein on One97 Communications: ‘Outperform’

Bernstein retained its ‘Outperform’ rating and raised its target price to Rs 2,200 from Rs 1,500, indicating an upside of around 36.3%.