Liberum lifts Trainline price target after update

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."