Trainline shares slump an overreaction, says broker in the wake of regulatory probe

What Brokers Say Tech Written by: Ian Lyall 08:53 Mon 24 Aug 2026 --> Edited by: Jamie Ashcroft Disclaimer No investment advice About this content Editorial Standards & Policies Share article About this content × About Ian Lyall Ian Lyall, a seasoned journalist and editor, brings over three decades of experience to his role as Managing Editor at Proactive. Overseeing Proactive's editorial and broadcast operations across six offices on three continents, Ian is responsible for quality control, editorial policy, and content production. He directs the creation of 50,000 pieces of real-time news, feature articles, and filmed interviews annually. Prior to Proactive, Ian helped lead the business output at the Daily... Read more About the publisher Proactive financial news and online broadcast teams provide fast, accessible, informative and actionable business and finance news content to a global investment audience. All our content is produced independently by our experienced and qualified teams of news journalists. Proactive news team spans the world’s key finance and investing hubs with bureaus and studios in London, New York, Toronto, Vancouver, Sydney and Perth. We are experts in medium and small-cap markets, we also keep our community up to date with blue-chip companies, commodities and broader investment stories. This is content that excites and engages motivated private investors. The team delivers news and unique insights across the market including but not confined to: biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto and emerging digital and EV technologies. Use of technology Proactive has always been a forward looking and enthusiastic technology adopter. Our human content creators are equipped with many decades of valuable expertise and experience. The team also has access to and use technologies to assist and enhance workflows. Proactive will on occasion use automation and software tools, including generative AI. Nevertheless, all content published by Proactive is edited and authored by humans, in line with best practice in regard to content production and search engine optimisation. Trainline PLC ( LSE:TRN ) View Price & Profile Trainline shares slump an overreaction, says broker in the wake of regulatory probe Published: 08:53 24 Aug 2026 BST Shore Capital has told investors that the sharp fall in Trainline PLC (LSE:TRN, FRA:2T9A) shares is punishing the ticketing platform for a worst-case outcome that is unlikely to materialise. The FTSE 250 company has shed £185 million in market value since the Competition and Markets Authority (CMA) opened an investigation into how booking fees are presented to customers. Shore argues the 19% drop since Tuesday implies a permanent £30 million cut to annual earnings before interest, tax, depreciation and amortisation, a hit the broker regards as far too severe. That valuation, it says, effectively prices in the complete removal of booking fees alongside a structural shift in customer behaviour, neither of which the regulator has demanded. The broker has kept its 'buy' rating and a 400p target price, more than double the level at which the shares have been trading. Central to Shore's case is that the regulatory threat looks smaller than the sell-off suggests. The CMA is examining whether mandatory fees are shown upfront or only later in the booking journey, a practice known as drip pricing, but has not found any breach of consumer law. Recent CMA penalties in other sectors have landed well below the theoretical maximum of 10% of global turnover, ranging from £0.7 million to £5 million. Trainline has also been in talks with regulators for months and has already explored technical changes to how fees are displayed, indicating the issue is neither new nor a surprise. Only 30% of UK tickets carry a booking fee, and most purchases made on the day of travel are exempt. Shore points to growth in Europe and business-to-business services as reasons to look past the regulatory noise, noting the shares now trade at less than five times earnings before interest, tax, depreciation and amortisation. Investors appeared to take a similar view on Monday, with the stock recovering 2.38%, or £4.70, to £202.20 in early trade. Continue reading