Trainline PLC (LSE:TRN) has received a couple of upgrades following an unscheduled and bullish trading update yesterday.
Second-half performance has been strong, according to the online rail ticketing group’s statement, with Trainline benefitting significantly from operating leverage as it scales up.
Deutsche Bank notes that taking the upgraded guidance range implies net ticket sales for the full year at £5.93bn to £6.04bn against its forecast of £5.927bn.
Revenue is implied at £440 million to £448 million (DB £440 million), with underlying profit [EBITDA] an implied £154-£157 million (DB £150 million).
As a result Deutsche Bank, which is a 'buyer', has raised its share price forecast to 556p from 530p.
Peel Hunt is not quite as upbeat with a price target of 460p and adding that its profits forecast is already aligned with the mid-point of the company’s new guidance.
Consensus, excluding Peel Hunt’s estimates, stands at £152 million.
“In addition, Trainline reported an EBITDA of £82 million for the first half of 2025, which reflects a slightly higher margin than the full-year guidance suggests," the broker said.
“We believe this is reasonable, considering the second half typically experiences less high-margin foreign travel.”
'Buy' is Peel Hunt’s view. The shares today were up 2% at 375p.