BofA takes a ‘Buy’ view on Paytm. Sees 20% upside in the new-age tech stock

Bank of America (BofA) Securities has given a ‘Buy’ rating for One 97 Communications, the parent company of Paytm, with a target price of Rs 1,020. BofA values Paytm based on a methodology that considers discounted cash flow (DCF) and enterprise value/sales (EV/S) valuation. The brokerage is optimistic about the growth prospects of Paytm, especially in the Indian market, and believes there are no balance sheet risks. Meanwhile, Macquarie has downgraded Paytm to neutral due to the sharp increase in share prices and the possibility of China’s Ant Financial reducing its stake.