Pine Labs shares get their first 'buy' rating after listing; Jefferies sees the stock touching ₹300

Shares of Pine Labs Ltd. are in focus on Wednesday, December 24, after brokerage firm Jefferies initiated coverage on the stock, projecting a 28.5% upside from its previous close.

Jefferies initiated coverage with a "buy" rating on Pine Labs with a price target of ₹300 per share.

Pine Labs is leading digital payments at stores as well as prepaid cards, and is building a share in online

payments and international issuing business.

The company's network with brands, merchants and banks, with tech-platforms, is the key moat that can lead to Pine Labs' revenue to grow at a Compounded Annual Growth Rate (CAGR) of 23% over financial year 2025-2028.

Its operating efficiency can lift the adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) margin from 15% to 27% by FY28, according to the Jefferies note.

Its valuations are a discount to peers and can re-rate with consistent growth, Jefferies added.

Pine Labs shares listed on the exchanges on November 14 at ₹242 apiece. This marked a premium of 9.5% over the IPO price.

Three analysts now cover Pine Labs, and one analyst each have a "buy", "hold", and "sell" rating on the stock.

Pine Labs shares ended the previous trade session 0.4% higher at ₹233.5 apiece.