Here's why Macquarie has double upgraded Paytm's stock to 'Outperform'

Following the upgrade, shares of Paytm surged 18.5 per cent to an intra-day high Rs 698 per share on the BSE on Wednesday

Paytm's surprise profitability at the operational level, in October-December quarter (Q3) of financial year 2022-23 (FY23), has left brokerages enthused about the fintech giant's growth pospects. 
 

Global brokerage Macquarie, for instance, double upgraded the stock to 'outperform' from 'underperform', increasing the target price by a whopping 80 per cent, on Wednesday as it sees a very visible change in the management's approach.
 

"At the time of listing, profit, and free cash flow were not even a part of management’s discussion. However, we see a very visible change in approach of management to deliver profit, evidenced by the core Ebitda profitability