In a report released yesterday, Peter McNally from Stifel Nicolaus maintained a Buy rating on Trainline (TNLIF – Research Report), with a price target of p460.00.
Peter McNally has given his Buy rating due to a combination of factors that highlight Trainline’s promising financial outlook. Despite a slightly weaker performance in net ticket sales and revenue, the company’s adjusted EBITDA as a portion of net ticket sales exceeded expectations, aligning with the anticipated levels. This indicates a robust operational efficiency that supports the company’s financial health.
Moreover, Trainline’s strategic decision to initiate an additional share buyback of up to £75 million demonstrates confidence in its financial stability and commitment to enhancing shareholder value. The stock’s valuation, trading at an ex-cash PE of 16x, is justified by its strong adjusted EBITDA margin and impressive forecasted earnings growth. Additionally, Trainline’s leadership in digital ticket retailing and its ongoing expansion in Europe further bolster its growth potential, making it a compelling investment opportunity.
In another report released yesterday, Morgan Stanley also maintained a Buy rating on the stock with a p445.00 price target.
TNLIF’s price has also changed slightly for the past six months – from $4.370 to $4.110, which is a -5.95% drop .