Paytm shares surge nearly 9% to multi-year high on Bernstein upgrade

Shares of One97 Communications, parent of $PAYTM tm, jumped nearly 9% on Monday, hitting an intra-day high of Rs 1,565.90 on the NSE. The rally followed Bernstein’s decision to raise its target price to Rs 2,200 from Rs 1,500 while retaining an “outperform” rating. The new target, higher than Paytm’s IPO price of Rs 2,150 for the first time since its 2021 listing, implies over 52% upside from Friday’s close. Bernstein factored in the expected introduction of Merchant Discount Rate (MDR) on select UPI merchant transactions from FY28. Analysts estimate MDR could lift Paytm’s net payments margins by 3-4 basis points and boost FY30 EPS estimates by about 30%. The government has clarified that consumers will not face charges, with MDR applying only to certain merchant transactions above a threshold.