Canaccord Genuity starts Trainline at ‘buy’

by | Sep 5, 2023

(Sharecast News) – Canaccord Genuity initiated coverage of Trainline on Tuesday with a ‘buy’ rating and 371p price target as it argued it’s potentially a 10-15% organic growth business and said the valuation is “very low valuation for such a high-growth and quality platform player”.
It said Trainline is a high-growth platform business that it believes investors have largely forgotten about.

“The risks around macro factors, regulation and competition are limited, in our view.

“We believe Trainline is now about to see a re-acceleration in growth to a compound 10-15% per annum., with increasing margins and a potential cash return story developing.”

The broker said that trading on a FY24E EV/EBITDA ratio of circa 11x and c.6% free cash flow yield, it expects a re-rating to occur.

“At the current valuation, the UK SaaS and International B2C businesses appear to be included for free,” it said.

At 1125 BST, the shares were up 2.3% at 241.80p.

Related articles

RBC Capital cuts Rentokil price target

RBC Capital cuts Rentokil price target

(Sharecast News) - RBC Capital Markets cut its price target on Rentokil Initial on Wednesday to 575p from 610p as it downgraded forecasts for forex and a greater back-end loading of TMX synergies, but said it believes the long-term story remains intact. The bank said...

Trending stories

Join our mailing list

Subscribe to our mailing list to receive regular updates!

x