Morgan Stanley expects Paytm's payments business to gather pace in the second half of fiscal 2027, supported by growth in monthly transacting users and improving consumer market share in UPI ecosystem
Morgan Stanley has upgraded One 97 Communications Ltd, the parent of Paytm, to Overweight from Equal-weight, raising its price target by 35 per cent to ₹1,950 from ₹1,450 as it sees stronger execution across payments and financial services supporting faster growth and further earnings upgrades.
The revised target implies an upside of about 22 per cent from Paytm's closing price of ₹1,601.60 on October 27. Morgan Stanley said continued execution, favourable industry developments and the potential for upward revisions to earnings estimates could support a further re-rating of the stock.
The upgrade comes after Paytm shares gained 46 per cent over the preceding six months. Despite the rally, the brokerage sees scope for further gains as revenue growth accelerates and profitability improves. It noted that consensus estimates for the company's FY28 earnings before interest, taxes, depreciation and amortisation had risen by more than 21 per cent over the same period.
Morgan Stanley expects Paytm's payments business to gather pace in the second half of fiscal 2027, supported by growth in monthly transacting users and improving consumer market share in the unified payments interface, or UPI, ecosystem.