The Trainline PLC (LON: TRN) share price soared 22.6% after Britain’s Department for Transport (DfT) abandoned plans for a Great British Railways ticketing website and app. The shares surged 22.6% to 347p by 0931 GMT, a peak not seen since November 2022, buoyed further by favourable comments from Barclays and JP Morgan.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
The DfT's unexpected announcement on Thursday withdrew the May 2021 proposal to launch a centralised Great British Railways ticketing platform. The Department stated that train operators would continue to sell tickets online alongside third-party retailers while exploring ways to enhance competition in the online rail ticket market for passengers' benefit.
This development eased concerns among Trainline investors about a potential new competitor in the UK's online ticket retail sector. Trainline, which holds a 62% market share, was previously seen as threatened by the prospect of new regulation and the introduction of a Great British Railways app, as per JP Morgan analysts.
JP Morgan's Friday report highlighted that withdrawing the DfT's proposal removes a significant uncertainty surrounding Trainline's business. The bank emphasised that worries over UK rail regulation changes had led to a devaluation of Trainline's stock, overshadowing the company's strong passenger growth and operational improvements.
While acknowledging concerns about Uber emerging as an online ticket aggregator, JP Morgan believes these have had little impact on market share and anticipates that investor focus will shift to Trainline's positive momentum and operational efficiency.
Reaffirming its ‘overweight' stance, JP Morgan maintained a target price of 350p for Trainline's stock. Barclays also reacted positively, changing its rating from ‘underweight' to ‘equal weight' and increasing its target price from 270p to 355p, labelling the news as a “thesis-changer” for Trainline.
Trainline share price.
The Trainline share price surged 22.57% to trade at 347.0p from Thursday’s closing price of 283.1p.
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YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.