Shore Capital has upgraded its earnings targets for Hostelworld Plc (LSE:HSW) in the wake of what was described as a solid set of prelims.
It has raised 2024 EBITDA and adjusted profit by 3% and 9% respectively.
"Asset light, we expect to see strong cash generation which will be used to further deleverage the balance sheet as well as for reinvestment into user experience features and functionality," Shore said in a note to clients.
"Post reaching a debt-neutral position, we see potential for additional uses of capital, including returns to shareholders."
Shares in the hostel chain are valued by Shore at 200p each, a 27% premium to the current price.