Bank of America Securities has raised its target price for Paytm to Rs 1,020 from Rs 885, after the company’s shares rose more than 90% from their 52-week low of Rs 439. The bank attributed the jump to Paytm’s momentum in high margin lending and Soundbox business, which could continue for at least the next three to four quarters and significantly increase the company’s profit margins. It also predicted Paytm’s visibility of 4-5 million Soundbox additions per year for the next 2-3 years, and that the company could add 15 million devices in that time.
