Goldman Sachs anticipates that Paytm will deliver approximately 50% revenue growth in the coming quarters, as the startup continues its transition from a payments-only business to an entity with a strong financial services portfolio.
As a result, the global brokerage has reiterated its ‘buy’ rating on Paytm, with a target price of INR 1,100, implying a 61% increase from the stock’s previous close. According to the brokerage, Paytm has one of the most compelling growth stories at an appealing price within its overall internet sector coverage. It cited Paytm’s improving payment monetisation and take rates, as well as greater visibility in achieving profitability, as major reasons for adding the stock to its conviction list.