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Deutsche Bank starts coverage of Trainline at 'buy'

09:40, 20th May 2024

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Deutsche Bank initiated coverage of Trainline Plc   Follow | TRN on Monday with a 'buy' rating and 470p price target.
It explained that Trainline is Europe's leading train and coach app. It gathers routes, prices and travel times from over 270 rail and coach operators in 40 countries, allowing the consumer to buy train and coach tickets quickly, saving time effort and money.

"Trainline offers a comprehensive collection of travel options to customers, in addition to unique, AIdriven information that helps individuals make the best decisions," DB said.

It said momentum at the group is strong in both the UK and Europe.

"We see significant opportunity for the UK business to outperform as digital ticket penetration continues to grow, 47% in 2023, with potential to grow to at least the 60s," the bank said.

"The group's business in Italy and Spain is gaining momentum; more detailed financial disclosure here has potential to allow a more granular valuation of these businesses, and the broader European opportunity."

DB added that France and Germany offer significant future potential as competition enters each market.

At 1010 BST, the shares were up 1.4% at 328.34p.

Stock Chart | TRN

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