Deutsche Bank raises target price on Trainline

Analysts at Deutsche Bank raised their target price on rail and coach ticketing platform Trainline from 268.0p to 319.0p on Friday after delivering "a relatively strong set of FY21 results".

Deutsche Bank stated the UK market is recovering strongly, and Trainline was benefiting from the rising penetration of eTickets, which now account for 42% of all ticket sales in Britain after doubling in the last two years.

The German bank noted that the introduction of digital railcards was improving "customer stickiness" and reducing the risk of losing customers to the new Great British Railways website/app when it launches.

DB, which stood by its 'hold' rating on the stock, also highlighted that Trainline management was also building momentum in Europe, where increased competition was creating "a material role" for a rail aggregator, something it thinks the firm is "well positioned" to take on.

"Management provided a guidance range for full-year revenues and profits, and this drives a 9% upgrade for our FY23 EBITDA forecast," said Deutsche. "However risks remain, with the full implications of the development of GBR yet to be made clear"

Reporting by Iain Gilbert at sharecast.com