Bernstein issues bullish forecasts for Paytm and Circle

Bernstein has maintained its 'outperform' rating for Paytm, raising its target price to Rs 2,200 from an earlier Rs 1,500. This marks the first time the brokerage has set a target above Paytm's IPO price of Rs 2,150. The upgrade is driven by the potential monetization of UPI transactions through the introduction of Merchant Discount Rates (MDR). Bernstein estimates that MDR could increase net payments margins by 3-4 bps, potentially driving a 30 per cent increase in FY30E earnings per share.

Separately, Bernstein has reaffirmed its optimistic outlook for the stablecoin provider Circle. Analysts maintained an 'Outperform' rating with a price target of $140, which represents more than a 100 percent upside from its current trading price of approximately $65.30.