Jefferies initiates coverage on Pine Labs with Rs 300 target price. Here's why it sees 28% upside
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Citing the company’s positioning at an earnings inflection point, global brokerage firm Jefferies has initiated coverage on Pine Labs with a ‘Buy’ rating and a target price of Rs 300. The brokerage highlighted that Pine Labs is expected to benefit from operating leverage, improved profitability, and growth across digital payment segments over the next three years. Impressively, the brokerage firm has highlighted an upside potential of 28% from Tuesday’s closing price. In its report, Jefferies projected a 23% compound annual growth rate (CAGR) in revenue between FY25 and FY28, supported by the expansion of Pine Labs’ Digital Checkout Point (DCP) network, increasing digitisation of commercial payments, and strong momentum in the affordability segment, which includes EMI offerings on credit cards and pre-paid card solutions. It further noted that contribution margins are expected to remain steady in the 76–78% range, while operating efficien...