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The FTSE 250 is home to a vast array of differnt type of businesses. Even though the index as a whole has done well over the past year, some companies could outperform in the coming year. Based on forecasts from analysts at banks and brokers, here are a couple of potential winners poised to surge.
Ready for departure
The first one is Trainline (LSE:TRN). The stock is down 45% over the past year, which will alarm some investors. Part of this revolves around worries with the UK government’s plan to launch a state-backed rail ticketing platform under Great British Railways. After all, this could erode Trainline’s core market share. However, implementation might be several years away, so I don’t see this as a concern right now.
In terms of forecasts, Deutsche Bank is predicting it could rise to 580p in the coming year. Considering the current share price of 204p, this represents a well over 100% increase. Even when I take the average of the 14 contributors I have access to, it’s a very respectable 381p. This reflects an 87% rally.
Of course, these are just predictions. But the bias is definitely towards the stock moving higher. Part of that comes from the valuation, with the share price move in the past year making it look attractive for value buyers. Further, H1 2025 results from November showed a 14% increase in profits compared with the same period last year. It also revised earnings higher, and expects net ticket sales to rise by 6%-9%.
The business flagged up rising leisure travel and general strength in the UK consumer, which is a great sign for further growth in 2026. I agree that the shadow of the potential state platform will linger, but if anything, it might have caused the stock to become oversold right now.
Another example is Domino’s Pizza (LSE:DOM). In a similar way to Trainline, the stock has been beaten up recently, down 39% over the past year and currently trading at 182p.
Despite this, some analysts remain optimistic about the company’s future. For example, Douglas Jack at Peel Hunt is still predicting the stock to rally to 275p this year. In terms of reasoning, the note said “we believe Domino’s valuation overlooks it having the most profitable franchisees and very large-scale competitive advantages”.
Valuation appears to be the main factor here, with the average target price from 10 contributors at 244p. The stock recently hit its lowest level in a decade, though in some respects the decline is warranted given business conditions. Domino’s revised earnings were lower last summer due to weak demand and rising costs. In a November update, it spoke of a “tough operating environment” that the management team believe could persist into this year.
That remains a risk going forward. However, Domino’s is one of the most recognised pizza brands in the UK. It boasts a strong digital ordering platform, with the brand name giving it pricing power and customer loyalty even in tighter consumer spending periods.
On balance, I think both companies are higher-risk options for investors to consider, but the potential rewards (reflected in the forecasts) could be lucrative.
