Trainline PLC (LSE:TRN, FRA:2T9A) shares jumped nearly 10% in early trading, reaching 208p following a solid first-half trading update and news of a £100 million share buyback.
It reported group adjusted EBITDA margins tracking slightly ahead of its guidance level of around 2.9%.
On the back of this, Shore Capital reiterated its ‘buy’ recommendation and 400p target price, suggesting Trainline’s valuation does not reflect the strength of its underlying performance, technology platform or longer-term market opportunity.
Group net ticket sales were £3.3 billion, flat year on year, while revenue of £233 million was down 1%. Shore Capital noted that both figures were slightly better than consensus expectations, which had pointed to declines of 1% and 3% respectively.
The company also reiterated its full-year guidance, with the latest £100 million buyback following completion of an earlier £150 million programme. Shore viewed the fresh repurchase as a positive signal of management confidence in the outlook.
