** Shares of payments solution co Pine Labs PINL.NS rise 1.84% to 236.80 rupees
** Morgan Stanley and Jefferies initiate coverage with "Equal Weight" and "Buy" and TP of 260 rupees and 300 rupees, respectively
** MS expects revenue to grow at ~19% CAGR during FY25–FY28 and Jefferies expects 23% CAGR revenue over FY25-28
** Both say growth driven by affordability services and issuing business
** MS says transition to an asset-light model and higher-margin segments should boost EBIT margin from 3% in FY25 to 20% by FY28; incremental margins could exceed 40–50%
** Jefferies says factoring the intensity of working
capital, including instant cashback to continue stay high and allow Pine Labs to generate business
** PINL down 6% since Nov 14 listing
(Reporting by Urvi Dugar in Bengaluru)
((UrviManoj.Dugar@thomsonreuters.com;))
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