Paytm shares jump 14% in 3 days. Should you ride the tide?

Paytm’s shares increased by 5% to reach Rs 809.4 on BSE after global brokerage firms BofA and CLSA revised their ratings upwards on the fintech company. BofA upgraded Paytm to ‘Buy’ and raised its target to Rs 885, while CLSA maintained its ‘Buy’ rating and put the target at Rs 850. CLSA predicted a potentially negative impact if the RBI allows First Loss Default Guarantee for non-regulated entities, as Paytm’s profitability and business model may suffer. Analysts also noted Paytm’s expansion into new businesses, such as lending and insurance, as a driver of bullish outlook.