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

Nomura initiated coverage of Paytm with a Buy rating and a ₹2,250 target, implying 33% upside. It 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.