On Monday (NASDAQ:MNDY), Deutsche Bank (ETR:DBKGn) initiated coverage on shares of Trustpilot Group PLC (TRST:LN) with a Buy rating and a price target set at £3.31. The firm's analyst highlighted Trustpilot's position as a global, sector-agnostic review platform that connects businesses and consumers.
The platform's value is anchored in the authenticity of its reviews, a feature bolstered by its open-ended platform which promotes independence, a vast proprietary data set of approximately 300 million reviews, and multiple content integrity measures.
Since achieving adjusted EBITDA break-even in FY23, Trustpilot has seen its momentum accelerate, attributed to several strategic initiatives. These include enhanced sophistication in its pricing and packaging models, re-focused go-to-market strategies in less mature regions, and a strong emphasis on cost discipline.
These factors are expected to drive over 15% per annum top-line growth and more than 200 basis points per annum adjusted EBITDA margin expansion from FY24 to FY26E.
The analyst expressed confidence in Trustpilot's near-term prospects, citing low execution risk due to the company's high revenue visibility and the strength of its management team and board. Trustpilot, founded in Denmark in 2007, operates a freemium Software (ETR:SOWGn) as a Service (SaaS) model and has established itself as a significant player in the online review industry.
Deutsche Bank's positive outlook for Trustpilot is underpinned by the company's continued focus on self-help measures and unit economics benefits, which are anticipated to contribute to its financial performance and growth trajectory in the coming years. The analyst's remarks underscore the potential that Trustpilot holds in maintaining its growth pace and expanding its market presence.
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