Trainline PLC (LSE:TRN) took a hit on the Government's plans to consolidate train operating companies' ticketing websites, but UBS believes the extent of the fall has been overdone.
Retailers can operate in an "open and fair manner", which UBS understands to mean the Government will not be able to undercut on pricing.
UBS points out that thus far Uber has to date had limited success in growing market share (UBSe <3% vs Trainline c35%) and based on that it sees limited scope for churn within Trainline's customer base.
Closure of the train operating companies' sites could even spur the adoption of Trainline's platform, which would provide upside potential to estimates.
The loss of white label operations will have an impact but the £19 million impact implied by the fall in share price is too much, says the Swiss bank, which has upgraded its rating to ‘buy’ with a 480p target, down from 490p previously.
Shares currently are 365p, down 1% today.