Proactive Investors - Trainline (LON:TRNT)'s update next week will see whether it can deliver on some punchy forecasts from City analysts over the past few months.
One broker, Shore Capital, believes the online ticketing group is set for 20% earnings growth over the next few years with a further opportunity for expansion as Europe's train network liberalises.
Already the company is the UK and Europe’s leading independent rail booking platform, says ShoreCap, having integrated over 270 carrier partners to date.
That has given it full coverage of the UK rail network and around 80% of the growing European system with customers in over 40 countries through both B2C and B2B channels.
"Trainline has an opportunity to improve on its 30% UK market share (from 20% pre-COVID) and potentially to more than double profitability by leveraging the trend towards online bookings, given its leading digital exposure as well as government investment," said the broker.
“Additionally, while Trainline only has an 8% share of the European market, we expect this to improve with industry liberalisation and growing carrier competition across the region.
“The group also has an opportunity to capture the €4bn foreign inbound travel market.”
'Buy' with a conservative fair value of 320p, around 30% upside, is Shore Capital’s view.
Shares today were down 0.6% at 244.6p.