Global brokerage firm Jefferies has reiterated its 'Buy' rating on Paytm (One 97 Communications Ltd), maintaining a price target of ₹1,350, which suggests an 18% upside. The firm believes that despite regulatory actions affecting Paytm Payments Bank Ltd (PPBL), Paytm's growth trajectory and profitability are secure. Jefferies highlighted that Paytm has already implemented significant structural changes in response to the 2024 regulatory restrictions, including shutting down its wallet business linked to PPBL and migrating UPI handles to partner banks. Following these changes, the brokerage noted that the cancellation of PPBL's license will have minimal impact on Paytm's operations, which continue to function normally. Jefferies forecasts a revenue compound annual growth rate (CAGR) of approximately 22% from FY26 to FY28, driven by robust growth in financial services distribution, expected to grow at 28%. Additionally, Paytm's profit after tax is projected to reach nearly ₹1,700 crore by FY28, with contribution margins remaining between 55-56% and adjusted EBITDA margins improving to 16%. The firm asserts that Paytm's business model is evolving to leverage scale-driven efficiencies, positioning it well for sustained growth and enhanced profitability in the future.