Paytm shares rally 50% in 6 months, but Nomura sees 33% more upside, initiates with 'buy'; check target price, rationale

Paytm shares have rallied by 50% in the last six months. Nomura has initiated coverage of Paytm with a 'Buy' rating and a target price of ₹2,250, indicating a 33% upside. Nomura expects rapid earnings growth driven by digital payments, merchant lending, cost efficiencies, and new revenue streams. Key risks include competition and deteriorating lending asset quality.