No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Analysts at Canaccord Genuity cut their target price on online ticketing platform operator Trainline from 330p to 311p on Monday, stating the firm's "mixed outlook" lacked momentum.
Canaccord Genuity stated that while Trainline reported "broadly positive" full year results on 6 May, its mixed outlook left the shares lacking what it believes they need - "momentum in nearterm estimates".
The Canadian bank said continued headwinds in the UK have perpetuated a cycle of "modest downgrades" to revenue growth expectations, leading it to reduce its forecasts by 2.5% to 7% across FY27-FY28 as a result.
However, Canaccord also said it continues to consider most of these headwinds to be "temporary in nature" and should "largely roll off" within the next 12 months.
In addition, Canaccord noted that Trainline was seeing "very strong demand" for its B2B distribution offering, which grew 36% year-on-year, and highlighted that as the "more temporary headwinds" begin to fade, there was "a solid foundation" for mediumterm growth.
"Trainline trades on a 7.8% FCF yield (incl. SBC) and 8.9x P/E on FY27E estimates. We maintain our 'buy' rating but lower our DCF-based target price to 311p due to lower estimates," said Canaccord.
Reporting by Iain Gilbert at Sharecast.com
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.