CLSA raise rating on Paytm brand owner One97 Communication, target raised to Rs 960

The broking firm CLSA has raised the rating on One97 Communication to “Buy” from “outperform” and also raised the target price to Rs 960 from Rs 925 as the company’s EBITDA increased.

The brokerage house has also raised the EBITDA estimates to 3% on the parent company of Paytm.

“It seems to us that the company will try to offset the bulk of the BNPL business loss by doing a little bit in various things – new revenue streams, cost reduction, etc.,” said CLSA.

According to the broking firm, the company is also looking at insurance broking as a new revenue stream. This would be customised business insurance plans for merchants.