Which brokerages have cut Paytm price targets?

You will find it difficult to get loans of up to Rs 50,000 from Paytm as the fintech said in a filing to BSE that such low ticket loans will not be available on its platform in abundance.  Rather, Paytm will now look to offer more high value loans in the range of Rs 3 lakh to Rs 5 lakh to consumers. Following this business update, Paytm’s scrip took 20 per cent plunge on the bourses as the fintech’s latest decision didn’t go down well with the market. Several global brokerages have downgraded the stock, cutting the price targets that were earlier set on the scrip

Let’s see which brokerages have cut price targets on Paytm:

Global brokerage firm, Goldman Sachs, reduced price targets by 49 per cent to Rs 840 from Rs 1,250. Another brokerage JP Morgan has cut target to Rs 900 from Rs 1,200 earlier. While, Jefferies, lowered target to Rs 1,050 from Rs 1,300, earlier. Whereas, Bernstein reduced it to Rs 950 from Rs 1,100 earlier. JM Financial on the other hand, cut price target to Rs 1,120.

Global brokerages that cut Paytm price targets:

Apparently, RBI’s earlier decision to make it mandatory for banks and NBFCs to keep more capital aside for lending is the main reason behind Paytm’s latest decision. The fintech has tied by with banks and NBFCs to provide loans to consumers on its platform.

On Thursday, the fintech’s scrip hit 20 per cent lower circuit on the BSE and fell to Rs 650.65 per share. In last six months, the scrip is down eight per cent. The scrip has given negetive returns since its much-famed IPO back in 2021. Lot of retail investors are still trapped in the company.  As of Q2 FY24, retail investors held 8.28 per cent stake in the fintech.