Shares in Trainline PLC (LSE:TRN) could have significant upside, according to Panmure Liberum, which initiated coverage with a 'buy' rating and a 470p price target, suggesting shares could rise by around 80% if things go as expected.
The broker’s detailed 78-page report argues that Trainline’s current valuation is “compelling,” with the stock trading at just 13.4 times next year’s forecast profits.
While many investors worry about the threat of competition from Great British Railways (GBR), Panmure says this risk is often overstated.
Instead, the bigger concern would be the government embedding conflicts of interest into future regulation, something the analysts see as unlikely for now.
The note points out that UK revenues could almost double from here, with further opportunities in European markets.
Trainline’s profit margins are already improving, and the company’s cash generation could triple over the next two decades.
With a stable core business, growing earnings, and the possibility of further expansion in Europe, Panmure believes the current share price offers an attractive entry point for long-term investors looking for growth and resilience in the travel technology sector.
In afternoon trading, the shares were up 0.6% at 265.28p.