Shares of Trainline PLC (GB:TRN) soared over 8% as of writing after the company upgraded its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) estimate and expects it to surpass the previous guidance range of 2.4% to 2.5% of net ticket sales. The company expects its net ticket sales and revenue growth to stay near the top end of its guidance range.
Trainline PLC is a technology company that owns an independent platform for rail and coach travel and sells tickets to millions of customers worldwide.
Trainline Beats FY25 Estimates
In H1, Trainline group’s net ticket sales rose to £3.0 billion, reflecting a 14% year-over-year increase on a constant currency basis, outpacing Trainline’s FY25 estimates of 8% to 12%. Meanwhile, the group revenue grew 17% to £229 million, surpassing the FY2025 guidance range of 7% to 11% growth.
The company’s performance was mainly driven by the rebound in the UK rail system after prolonged strikes and the rising popularity of digital ticketing. Additionally, Trainline reported growth in Europe, especially in Spain and Italy. The company’s net ticket sales have tripled over the past two years in Spain, with more than one million customers making transactions in the last 12 months alone.
Berenberg Stays Bullish on TRN Stock
Following the update, analyst Ciaran Donnelly from Berenberg Bank raised his price target on the stock from 460p to 475p while confirming a Buy rating. The new target price indicates 46% upside potential. Considering the company’s solid performance and guidance upgrade, Berenberg raised Trainline’s revenue, adjusted EBITDA, and adjusted earnings per share (EPS) forecasts by 2%, 7%, and 9%, respectively, for FY25.
Similarly, Peter McNally from Stifel Nicolaus also reiterated a Buy rating on TRN stock, forecasting 26% upside potential.
What Is the Forecast for Trainline Shares?
TRN stock has been assigned a Strong Buy rating on TipRanks, based on six Buys and one Hold recommendation. The Trainline share price target is 441.16p, which implies an upside of 35.4% on the current trading price.
