Proactive Investors - Hostelworld Group PLC (LON:HSW) has received backing from Deutsche Bank (ETR:DBKGn) analysts on the online travel agent’s scope for market share gains.
Deutsche Bank initiated coverage of the London-listed company with a ‘buy’ rating, hailing Hostelworld’s offerings for solo travellers.
Addressing the needs of these gives Hostelworld a “competitive advantage over multi-product competitors,” the bank said in a note.
A share price target of 215p was also set in place by Deutsche, with this marking a prospective 37% rise on Thursday’s close.
“Its [roughly] 10.5% share of market bednights has upside potential in our view,” Deutsche said.
“With only 74% of global hostels currently offered on the platform, there is also scope to add additional content to drive revenues.”
Deutsche highlighted Hostelworld’s 37% increase in bookings over the course of last year, noting this demonstrated the power of its approach of offering products to connect travellers.
Shares climbed 1.3% on Friday.