Trainline PLC (LSE:TRN) remained the top pick in the online platform sector in Liberum’s latest overview.
The broker noted it has good earnings momentum in the UK business, international growth is coming through and it should be resilient in a consumer downturn in 2023.
Auto Trader’s recent results highlighted its core business is performing well whilst Autorama disappointed, but worth noting the acquisition was based on a medium-term strategic rationale as opposed to short term earnings accretion.
Liberum suggested that year-to-date weakness in the sector provides an opportunity to gain exposure to some high-quality growth companies.
It said current discount relative to historic multiples suggest the online platforms are attractively priced while interest rate expectations are seemingly rolling over which provides a positive backdrop for 2023.
Liberum pointed out the peer group’s YTD average share price decline is 28% vs. 23% in July.
The only company that has outperformed both indices is Trainline but now Moneysupermarket is outperforming Stoxx600, it noted.
The broker has buy ratings on Trainline PLC (LSE:TRN) (price target 470p), Auto Trader Group PLC (LSE:AUTO) (price target 725p), Rightmove PLC (LSE:RMV) (price target 705p), and Moneysupermarket.com (LSE:MONY) (price target 215p) and Trustpiloit Group PLC (price target 110p).