Hostelworld Group PLC (LSE:HSW, OTC:HSWLF) can make big market share gains in the online travel sector, analysts at Deutsche Bank predict.
Deutsche Bank has initiated coverage of the London-listed company with a ‘buy’ rating, hailing Hostelworld’s offerings for solo travellers.
Addressing their needs gives Hostelworld a “competitive advantage over multi-product competitors,” said the note.
“Its [roughly] 10.5% share of market bednights has upside potential in our view,” Deutsche said.
“With only 74% of global hostels currently offered on the platform, there is also scope to add additional content to drive revenues.”
Deutsche highlighted Hostelworld’s 37% increase in bookings over last year, noting this demonstrated the power of its approach of offering products to connect travellers.
The bank's share price target of 215p is 37% higher than Thursday’s close.
Shares climbed 1.3% on Friday.