Pine Labs shares jump 9% after JPMorgan initiates coverage, cites growth potential

Shares of Pine Labs

Ltd. are trading over 9% higher on Wednesday, April 8, after brokerage firm JPMorgan initiated coverage on the stock.

JPMorgan has initiated coverage with a 'Neutral' rating and a price target of ₹165 per share, implying a potential upside of over 9% from current levels.

The brokerage said that Pine Labs has been a pioneer in in-store payments infrastructure and affordability solutions.

It has also expanded into adjacent segments, including online payments, issuing, and financial technology infrastructure, through a mix of organic growth and acquisitions.

JPMorgan highlighted that Pine Labs operates in a large and growing total addressable market for digital payments, and expects a compound annual growth rate of 23% to 25% between financial year 2024 and financial year 2029.

It also sees earnings before interest, tax, depreciation and amortisation margins expanding to around 27% by financial year 2028.

Last month, Jefferies cut its price target on Pine Labs by 13.3% to ₹260 per share from ₹300 earlier.

According to available analyst recommendations, two analysts each have 'Buy' and 'Hold' ratings on the stock, while one analyst has a 'Sell' rating.

Shares of Pine Labs were last trading 9.13% higher at ₹170.87, although the stock continues to remain below its issue price.