Liberum lifts Trainline price target after update

Liberum upped its price target on Trainline on Thursday following the company’s trading update and increased guidance a day earlier.

The broker, which rates the shares at ‘buy’, said Trainline’s first four months of trading have performed ahead of expectations, with net ticket sales up 16% versus FY20 levels.

"Trainline provided updated FY23E guidance which at the midpoint points to circa 20% and 30% upgrades to consensus revenue and adjusted EBITDA," it said. "We have upgraded our FY23E forecasts by 15% and 26% respectively."

Liberum noted that Trainline shares closed up 21% on Wednesday.

"Following yesterday’s share price move and our change in forecasts Trainline’s shares are trading on CY22E EV/Sales of 5.4x.

"We increase our target price to 470p (from 435p) and we believe that the shares should continue to re-rate.

"We see Trainline as the long-term winner in a structurally growing market and the strength of the recovery post-Covid is supportive of this view."