Nomura initiates Paytm with "buy" rating on UPI payments growth

** Companies such as Paytm PAYT.NS are best positioned to capture the next phase of growth in India's digital financial services landscape with the UPI payment sytem expected to remain the backbone of this expansion, analysts at Nomura say

** Brokerage initiates coverage with "buy" rating, TP at 2,250 rupees

** Nomura see co's growth story being reshaped by 3 levers: UPI MDR revenue, selective international expansion, and its proprietary enterprise AI product for banks and insurers

** Paytm's cost structure will likely improve across the board, with AI as the biggest structural driver, says Nomura

** 21 analysts on average rate stock "buy", median TP 1,940 rupees

** PAYT.NS shares down 0.7% at 1,700.90 rupees on the day; YTD, shares up 30.92%