new Delhi: PaytmThe digital payments startup whose stock has fallen 71% since its November market debut had further cut its price target macquarie Capital Securities (India) Pvt. Analyst Joe was quick to predict the company’s troubles.
Macquarie’s Suresh Ganapathy cut his price estimate from Rs 700 to Rs 450, citing low valuations for fintech companies globally. It did not change its earnings or revenue estimates for Paytm, which it underperforms. The stock rose to Rs 634.05 on Wednesday.
Paytm launched its largest ever initial public offering in India, but it has faced several challenges since then. Ganapathi cited fintech regulations and tighter compliance norms as potential headwinds – On Friday, the Reserve Bank of India barred the company’s Paytm Payments Bank venture from accepting new customers, adding pressure to the stock.
As per data compiled by Bloomberg, the 12-month average price target among nine analysts covering Paytm is Rs 1,203. Ahead of the listing, Macquarie analysts, including Ganpati, began coverage with an underperform rating and a price target of Rs 1,200. The IPO was priced at Rs 2,150.
initial public offering by a 97 communication Ltd., the parent company of Paytm, was touted by some as a symbol of India’s growing appeal as a destination for global capital, especially for investors looking for alternatives to China.
Unified Payment Interface, which allows instant transfer of funds, has an open architecture. Therefore, according to a note from Moody’s Investors Service, a large user base does not make a particular service provider more competitive than others on the system.
In addition, India’s leading banks have significantly expanded their digital product offerings and may face competition from fintechs, Moody’s analyst Srikanth Vadlamani wrote in the note on Thursday.
Macquarie’s Suresh Ganapathy cut his price estimate from Rs 700 to Rs 450, citing low valuations for fintech companies globally. It did not change its earnings or revenue estimates for Paytm, which it underperforms. The stock rose to Rs 634.05 on Wednesday.
Paytm launched its largest ever initial public offering in India, but it has faced several challenges since then. Ganapathi cited fintech regulations and tighter compliance norms as potential headwinds – On Friday, the Reserve Bank of India barred the company’s Paytm Payments Bank venture from accepting new customers, adding pressure to the stock.
As per data compiled by Bloomberg, the 12-month average price target among nine analysts covering Paytm is Rs 1,203. Ahead of the listing, Macquarie analysts, including Ganpati, began coverage with an underperform rating and a price target of Rs 1,200. The IPO was priced at Rs 2,150.
initial public offering by a 97 communication Ltd., the parent company of Paytm, was touted by some as a symbol of India’s growing appeal as a destination for global capital, especially for investors looking for alternatives to China.
Unified Payment Interface, which allows instant transfer of funds, has an open architecture. Therefore, according to a note from Moody’s Investors Service, a large user base does not make a particular service provider more competitive than others on the system.
In addition, India’s leading banks have significantly expanded their digital product offerings and may face competition from fintechs, Moody’s analyst Srikanth Vadlamani wrote in the note on Thursday.