JPMorgan downgraded Paytm to underweight from neutral earlier and has also reduced the target to Rs 600 from 900 earlier.
The regulator’s action impairs profit pools, network effects, and credibility. Paytm has to migrate its business to other banks which can dilute its economics and network effects.
The global investment bank is of the view that the order might not be the end of the road for Paytm. It materially impacts near-term growth.
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