New Delhi, Sept. 10 -- Global brokerage Bernstein has named Paytm a "Top pick", citing merchant lending growth and operating leverage as the key drivers of its earnings growth, while maintaining its Outperform rating on the fintech major with a target price of Rs.2,200.

In its latest report on One97 Communications, Bernstein said it sees a "clear right to win for Paytm and a long growth runway" in merchant lending. The target price of Rs.2,200 implies a 26% upside from Paytm's closing price used in the report.

Bernstein expects Paytm's revenue to grow at a 24% CAGR between FY26 and FY30, supported by growth across payments and financial services. Over the same period, the brokerage expects EBITDA to increase from around Rs.5 billion to ...