Mumbai, Sept. 30 -- Global brokerage Macquarie has raised its target price on Paytm by 64% to Rs.2,025 from Rs.1,235 and upgraded the stock to 'Outperform' from 'Neutral', citing strong revenue growth, improving cross sell and disciplined cost control.

Macquarie said these factors "underpin a sharper margin trajectory" and raised its average EBITDA margin estimates by around 6% over FY27 to FY29.

In its India Financials report, the brokerage said the new target price implies an upside of 23% from Paytm's market price of Rs.1,647 as of September 25. It values Paytm at 45 times FY28 estimated earnings.

A key driver of the upgrade is the merchant discount rate (MDR) notification, which Macquarie said provides Paytm a further Rs.10 billion...