Mumbai, Oct. 9 -- JM Financial Institutional Securities has reiterated its Buy rating on Paytm and raised the 12-month target price to Rs 1,420 from Rs 1,320, citing continued profitability, higher operating leverage and improved efficiency across the fintech's businesses.

According to the brokerage's latest Internet Sector Preview, Paytm's revenue is expected to grow around 7 per cent quarter-on-quarter and 23 per cent year-on-year, supported by steady expansion in its payments and financial services segments. JM Financial forecasts 27 per cent year-on-year GMV growth and a 6 per cent sequential increase in merchant subscribers to 13.8 million as the company focuses on both new sign-ups and reactivation of dormant merchants.

The report...