The stock then tumbled over 84% to hit a peak low of Rs 310 apiece in May 2024 during the aftermath of RBI’s crackdown on Paytm Payments Bank, before beginning a sharp turnaround cycle.Paytm shares jumped around 10% on Monday, pushing the stock around 411% higher than its all time low of Rs 310 apiece.Bernstein sees Paytm shares finally crossing their 2021 IPO priceDespite the sharp fall from IPO price, Paytm’s long-term investors found a silver lining recently after Bernstein raised its target price for the stock to Rs 2,200 from Rs 1,500, while retaining its Outperform rating.
The latest target price is the highest on the Street and marks the first time Paytm has received a target price above its IPO price.
It implies 39% upside potential from previous closing price.The target price hike comes as Bernstein incorporates the introduction of MDR on UPI transactions into its base case from FY28 onwards.
The brokerage expects MDR to improve Paytm's net payments margin by around 3-4 basis points, resulting in an estimated 30% increase in FY30 EPS compared with its previous forecasts.Also read | Paytm shares jump after Bernstein assigns target price above IPO price for first timeWhat lies ahead for Paytm share price?Paytm shares have clearly moved from a turnaround phase into a strong uptrend, said Ajit Mishra, SVP of Research at Religare Broking.
