Jefferies gives 'buy' rating to Pine Labs; stock up 28%
Big news for Pine Labs: global investment bank Jefferies just gave the company a "buy" rating and set a target price of ₹300—meaning they see potential for the stock to rise nearly 29% from where it is now.
Pine Labs made its market debut on November 14 at ₹242 (already up 9.5% over its IPO price), though it recently closed at ₹233.5, below its listing price.
Why Jefferies is optimistic
Jefferies likes Pine Labs for its strong position in digital payments and prepaid cards, highlighting its huge network with brands, merchants, and banks.
They're expecting steady growth—projecting revenue to jump by about 23% each year till FY28—and believe better efficiency could boost profit margins from 15% to 27%.
Also, compared to similar companies, Pine Labs looks undervalued right now, so if growth stays solid, there could be even more upside ahead.